Former President of the World Bank and European Central Bank (ECB) Jean-Claude Trichet criticized Bitcoin, expressing the opinion that cryptocurrencies will never become full-fledged money as he stated at a conference in Beijing, according to the South China Morning Post.
Trichet believes that over time, the world will abandon the use of cash, but it is unlikely that cryptocurrencies will replace it.
The ex-head of the ECB said that the purchase of cryptocurrencies is due to “pure speculation”:
“I am categorically against bitcoin … Even if [the cryptocurrency] is supposed to be based on underlying assets, I am observing a lot of speculation. It is not healthy.”
Trichet also mentioned the Libra project from Facebook. Earlier the ECB said that Libra is a threat to both monetary policy in the EU and consumers of digital currency.
In his opinion, special drawing rights (SDRs) issued by the International Monetary Fund are a much more reliable monetary instrument.
“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.”
Earlier, the former head of the Chinese central bank Zhou Xiaochuan said that Libra should be controlled by the IMF.