Former president of the European Central Bank (ECB), Jean-Claude Trichet, has expressed his strong dislike for Bitcoin (BTC), saying that the asset really does not have what it take to be properly classified as a currency. According to Trichet, BTC is not real.
Speaking at the recent Caixin conference which held in Beijing, Trichet revealed his doubt about cryptocurrencies generally, but specifically said that real currency has a lot more than Bitcoin does:
“I am strongly against Bitcoin, and I think we are a little complacent…The currency itself is not real, with the characteristics that a currency must have.”
Trichet further stated that there is too much speculation surrounding cryptocurrency. Apart from the fact that a real currency isn’t speculative, this feature of digital currencies is also not a very healthy one. Trichet also came down on stablecoins. According to him, stablecoins are not exempt from this general cryptocurrency speculation, even though they are supposed to be backed by a proper asset like fiat currency or gold. He also added that even if there comes a time where traditional banknotes are relegated, the next best thing should not be crypto.
Unsurprisingly, the former president also doesn’t think Facebook’s forthcoming Libra cryptocurrency is a great idea. Even though the Libra is supposed to backed by a basket of currencies, Trichet believes that the International Monetary Fund’s Special Drawing Rights (SDRs) is a better alternative for an asset-backed by a basket of currencies.
“I have great doubts about keeping control of monetary value in [the digital currency] domain…In the so-called new stable international currencies,… the SDR would be right basket.”
Back in May, the ECB published a paper that concluded that cryptocurrencies pose no threat to financial stability.
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