Bitcoin is not a Real Currency, Says Former ECB President

Bitcoin is not a Real Currency, Says Former ECB President

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, the European Central Bank. Other sovereign banks looking to launch their own cryptocurrencies include the Federal Reserve, People’s Bank of China (PBoC) and The Venezuelan government’s, Petro.

A recent study by Chainalysis on 350 financial professionals showed that nearly 50% of them have the confidence in BTC experiencing higher growth than the S&P 500 index in 2020.

Summary
Bitcoin is not a Real Currency, Says Former ECB President
Article Name
Bitcoin is not a Real Currency, Says Former ECB President
Description
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. Notwithstanding, Jean believes that cryptocurrencies do not hold the properties to be used as a global currency in the future.
Author
Publisher Name
Coingape
Publisher Logo
Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Author: Lujan Odera

Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.

Post your comment...
Lujan Odera 43 Articles

Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.

Follow Lujan @