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Just a few days ago, banking monolith, JPMorgan announced the introduction of the first ever US bank-backed cryptocurrency. However, crypto industry experts took to Twitter to explain why the so-called stablecoin isn’t a real cryptocurrency.
The launch of the JP Morgan coin by the largest bank in the U.S.A. is causing reactions across the cryptocurrency industry.
While JP Morgan Chase CEO, Jamie Demon has been calling Bitcoin a 'Fraud', his company has been working on its own cryptocurrency behind the scenes, which should be ready to move into real world trials in just a few short months.
However, calling the JP Morgan stablecoin a cryptocurrency, doesn't seem to sit well with some of the leading crypto experts.
Read more: JPMorgan set to move its in-house cryptocurrency to real-world trials
Nick Szabo, a blockchain, cryptocurrency and smart contracts pioneer, was one of the first of the renowned crypto experts to take to Twitter to call JP Morgan out.
Not decentralized
— Daniel Arráez (@darraez) February 15, 2019
Not open
Not borderless
Not cryptocurrency https://t.co/feQCfdFihu
It's another word or phrase in this business that many a dishonest huckster feels that it's perfectly OK to re-apply to their own very inferior thing.
— Nick Szabo 🔑 (@NickSzabo4) February 15, 2019
Max Keiser, VC investor, crypto commentator and host of the Keiser report, took to Twitter today to remind people to buy Bitcoin and to leave 'Alts Like JPM Coin to Dickheads Like Jamie Dimon'.
He previously called Jamie Dimon an American financial terrorist who launched a competitor to the Venezuela's 'Petro coin'.
American financial terrorist Jamie Dimon launches a competitor to Venezuela’s ‘Petro’.
— Max Keiser, tweet poet. (@maxkeiser) February 14, 2019
“JPMCoin is backed by the hundreds of billions we stole from our customers - and paid a minuscule fine - with the SEC’s help”. - Jamie Dimon https://t.co/jYStz86SVs pic.twitter.com/Ly9CVCDIU9
Anthony Pompliano, co-founder at Morgan Creek Digital capital, said that 'J.P. Morgan is launching a stablecoin. Soon every bank will issue one as well. Closed systems for the world’s elite will always be beaten by open systems built for the common person. Long Bitcoin, Short the Bankers!'
He added that soon JP Morgan will be the most popular coin to be used for money laundering this year.
The most popular token for money laundering this year will be JPM Coin
— Pomp 🌪 (@APompliano) February 14, 2019
Nouriel Roubini, known in particular as ‘Dr Doom’ in the crypto sphere noted that JPM’s coin is not a public blockchain, but a private one which has ‘nothing to do’ with crypto.
In which way has the new alleged JPMorgan crypto coin anything to do with blockchain/crypto? It is private not public, permissioned not permissionless, based on trusted authorities verifying transaction not trustless, centralized not decentralized. Calling it crypto is a joke
— Nouriel Roubini (@Nouriel) February 14, 2019
Brad Garlinghouse, CEO of Ripple, insisted that JPM is not only nothing new, but is in direct conflict with advancements made in crypto technology.
As predicted, banks are changing their tune on crypto. But this JPM project misses the point – introducing a closed network today is like launching AOL after Netscape’s IPO. 2 years later, and bank coins still aren’t the answer https://t.co/39EAiSJwAz https://t.co/e7t7iz7h21
— Brad Garlinghouse (@bgarlinghouse) February 14, 2019
Jerry Brito, the executive director at CoinCenter, a non-profit focused on the policy issues facing cryptocurrencies said that there is a lot of confusion in regards to the JP Morgan stablecoin.
'I see folks referring to it as a cryptocurrency. It’s not a cryptocurrency. A cryptocurrency is one that is open and permissionless, if you want to download it, you don’t need permission; you just need some software.'
'While I’m glad banks are pursuing these blockchain-based projects, and think they’ll potentially create a lot of value, we need to make sure the word cryptocurrency doesn’t lose its meaning, which is open and permissionless electronic cash.'
If JPM Coin is a cryptocurrency, then so is Fortnite V-Bucks.
— Jerry Brito (@jerrybrito) February 14, 2019
Read more: What does JPM Coin mean for Ripple and the wider crypto industry?