ABC criticizes Bitcoin as a high-risk, high-volatility punt, ABIB files complaint

The Australian Bitcoin Industry Body (ABIB) filed a complaint with the Australian Broadcasting Corporation against ABC News, Australia’s government-funded public broadcaster, over several factual errors and one-sided framing in a recent crypto coverage.

The Australian Bitcoin Industry Body cited “misrepresented Bitcoin’s purpose, conflated it with criminal activity, omitted long-standing publicly available information, and relied on sensational language rather than evidence.”

According to them, ABC ignored well-documented global and local use cases, including energy grid stabilization and humanitarian remittances, as well as merchant adoption and sovereign reserves, which effectively reduced its coverage to outdated & misleading tropes and narratives on price swings and US politics.

ABC criticizes Bitcoin as a high-risk, high-volatility punt

ABC, the nation’s largest media organization, which operates television, radio, and digital news services, published the contested piece on December 1. It analysed Bitcoin’s recent price volatility while questioning its utility. 

The article written by chief business correspondent Ian Verrender stated, “Conceived almost 18 years ago by the mysterious Satoshi Nakamoto, or someone acting under that name, Bitcoin has never realised any of its stated goals and has no useful purpose. It hasn’t replaced the global financial system and is rarely used in ordinary, legitimate transactions.”

The article also described Bitcoin as increasingly volatile and that it is no longer considered a store of wealth. “And now it seems likely that even those engaged in nefarious dealings are shying away from it,” the article continues.

Additionally, the article highlighted that Bitcoin will not challenge the global dominance of the US dollar and that it no longer even pretends to be in a position to replace the greenback. Instead, it is now behaving less like the digital gold it was once hailed as and increasingly like a high-risk, high-volatile punt. And it is getting worse.

ABIB stated that the coverage breaches the ABC’s own Editorial Policies and Code of Conduct by ignoring well-documented global and local use-cases. That includes energy grid stabilization and humanitarian remittances, as well as merchant adoption and sovereign reserves.

The group also stated that it is frequently contacted by members of the public who are frustrated by recurring misrepresentations of Bitcoin in Australian media. To that end, ABIB calls on the ABC to issue corrections, uphold its editorial obligations, and engage subject-matter expertise in future reporting.

“The public deserves better […] Bitcoin deserves informed, responsible coverage, not dismissal through outdated narratives,” the group wrote.

Meanwhile, Bitcoin has increased by 6% over the last week. However, it is still 14% down in the last month. The coin is trading at $92,338.

ABC criticizes Tether as an avenue to fly under the radar for criminals

Besides Bitcoin, Tether wasn’t spared. The article stated, “As a stablecoin, Tether operates differently from most others in the crypto world. Unlike Bitcoin, which has a publicly available ledger, Tether offers users an avenue to fly under the radar. It now dominates trading across borders from the bazaars of Istanbul to Beijing and the barrios of Rio de Janeiro, allowing profits to be laundered globally and transfers hidden.”

It quoted research firm Chainalysis, which revealed that in the last calendar year, approximately $41 billion of crypto linked to illegal activities was exchanged globally as stablecoins. It also quoted an investigation by The Economist newspaper, entitled ‘How Tether became money launderers’ dream currency.’

The International Consortium of Investigative Journalists revealed that at least $1.4 billion in USDT tokens passed through a crypto wallet linked to the Cambodia-based Huione Group. The group was flagged by US authorities for laundering billions tied to North Korean hackers, human trafficking, and scam operations.

The smartest crypto minds already read our newsletter. Want in? Join them.