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 a 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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