Not only is he outraged by its article, he goes on to write, “It reveals an epic lack of understanding on the part of mainstream media and the financial industry at large. And it’s a disservice to those who rely on traditional financial media for trusted information.”
Bloomberg Crypto account on Twitter also reinforced the message with, “Bitcoin is getting a delayed boost from the announcement that JPMorgan has developed a digital coin to speed up payments between corporate customers.”
The launch of the JPM Coin has divided opinion. There are those who see it as a good thing, because it suggests the big financial institutions are finally ready to engage with crypto and digital assets, while there are others who think it should be called ‘FraudCoin’ and will become the perfect tool for money laundering.
Perhaps the most important aspect of the JPM Coin story is how the mainstream media have got it wrong again. Brown points the finger at Barrons for it’s “particularly laughable”: JPMorgan Just Killed the Bitcoin Dream. And the Washington Examiner with its JPMorgan’s Alternative to Bitcoin.
These are just two of what Brown calls the “ latest in a string of many short-sighted and wildly inaccurate headlines around the JP Morgan crypto launch.”
To be clear, the JPM Coin is nothing like bitcoin, and isn’t a pure cryptocurrency. It’s more of a stablecoin, because it is tied to the USD, i.e. 1 JPM=1USD. And it is centralised, whereas the key feature of genuine cryptocurrencies is that they are decentralised.
Furthermore, bitcoin’s recent price revival started days before the JP Morgan announcement. Analysts claiming that it is connected with the arrival of JPM Coin forget that other factors have been in play, such as Nasdaq’s announcement that it is launching a bitcoin price index, and bitcoin’s Lightning Network is breaking new ground.
Brown sees the JPM launch from an entirely different perspective than Bloomberg, He says, “The launch of JP Morgan’s is a clear sign that the banking industry is threatened by the rise of bitcoin. The aging institutions are just scrambling to stay relevant with weak replicas of blockchain technology.”