The European Central Bank’s former president Jean-Claude Trichet, who also served as France’s finance minister, has once again come forward to critic Bitcoin’s features as a possible alternative to money. Not withstanding, Jean believes that cryptocurrencies do not hold the properties to be used as a global currency in the future.
“Bitcoin is not a real currency”
According to a post on SCMP, the former central bank executive spoke during the 10th annual Caixin’s conference in Beijing on Nov. 10 condemning the use of Bitcoin as currency. He joins a list of central bank presidents and traditional finance moguls to denounce BTC’s volatility and non-regulation as a cause for worry in the industry.
“I am strongly against bitcoin, and I think we are a little complacent,” Trichet said during a panel discussion at Caixin’s 10th annual conference on Sunday in Beijing. “The [crypto]currency itself is not real, with the characteristics that a currency must have.”
Furthermore, the extensive use of crypto as a speculation asset today does not sit right with Jean who believes it is ‘unhealthy for the industry’. He said,
“Even if [the cryptocurrency] is supposed to be based on underlying assets, I am observing a lot of speculation. It is not healthy.”
However, the number of banks across the world have shown increasing interest in blockchain and cryptocurrencies in the past year.
A conflicting view from the legacy financial industry
The threatening nature of Bitcoin to central banks is usually a cause to worry for the high and mighty in the legacy financial industry. However, a number of central banks around the world have started developing their own cryptocurrencies including Jean’s former employer,