Bitcoin lacks the characteristics of a currency and is purely speculative, according to the European Central Bank’s former president Jean-Claude Trichet.
Bitcoin (BTC) lacks the characteristics of a currency and is purely speculative, according to the European Central Bank’s former president Jean-Claude Trichet. Chinese news outlet South China Morning Post reported on Nov. 10 that Trichet made remarks at Caixin’s conference in Beijing.
“I am strongly against Bitcoin”
During the event, Trichet also expressed doubt that cryptocurrencies could ever become the future of money. He said that Bitcoin lacks the characteristics of a real currency:
“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 also explained that he believes buying cryptocurrency is, in many respects, just speculation. He also claimed that even when a crypto asset is supposedly backed by a real asset, he still observes a lot of speculation, which he concluded is “not healthy.”
Trichet prefers SDR to Libra
Trichet added that he’s also not a fan of Facebook’s proposed Libra stablecoin and noted that he, unsurprisingly, prefers the Special Drawing Rights (SDRs) issued by the International Monetary Fund.
Similarly to Libra’s plans, SDRs are backed by a basket of currencies, including the U.S. dollar, the euro, the pound sterling, renminbi and yen. He explained:
“I have great doubts of keeping control of monetary value in [the cryptocurrency] domain. […] In the so-called new stable international currencies […] the SDR would be the right basket.”
Trichet also said that, while the world may be leaving banknotes and coins behind, cryptocurrencies could not be the way forward.
As Cointelgraph reported in September, another former European Central Bank president Mario Draghi echoed Trichet saying that cryptocurrencies and even stablecoins “are not designed in ways that make them suitable substitutes for money.”