European Central Bank’s former president bashes Bitcoin and Libra

Ali Raza
  • November 14th 2019, 09:19
  • Last Updated: November 14th 2019, 11:47
  • The former president of EBC recently spoke about cryptocurrencies at a Beijing-based conference, claiming that Bitcoin is not real money.
  • Jean-Claude Trichet believes that the world will leave physical money behind, but he notes that cryptocurrency is not the right way to go.
  • Apart from Bitcoin, he also dislikes Libra and other stablecoins, saying that the amount of speculation surrounding them is 'not healthy.'

Despite the raging success that cryptocurrencies have achieved in the last several years, they still continue to attract strong criticism from a few select groups. Unsurprisingly enough, bankers are among the most vocal critics of the emerging technologies.

Recently, however, some of the banks even decided to partner up with blockchain-based companies, such as Ripple, and even indirectly use cryptocurrencies to make faster international payments. But, Facebook’s announcement of Libra earlier this year once again sparked some of the most vocal nay-sayers to emerge with new criticism, likely in fear of the upcoming coin’s potential success.

ECB former president remains anti-crypto

While Libra may be what sparked the new wave of anti-crypto arguments, it is certainly not the only coin to be bashed by crypto skeptics. Bitcoin itself saw a lot of additional criticism, likely sparked by its recovering price, which surged earlier this year.

The new bashing of Bitcoin and Libra alike came from Jean-Claude Trichet, the former president of ECB (European Central Bank), who claimed that these assets are not even real money, much less the future of finances.

Obviously, Trichet did not hide his feelings towards Bitcoin, openly stating that he is strongly against it during the recent Caixin’s annual conference in Beijing. His speech was reported by the local media outlet known as the South China Morning Post.

According to the publication, Trichet stated that Bitcoin is not real, as it doesn’t have the characteristics that a currency needs to possess to be considered ‘real money.’ Furthermore, he also noted that there is quite a bit of speculation involved with Bitcoin and other cryptos, which is ‘not healthy.’

He did not spare stablecoins either, despite their dependence on fiat currencies and price stability. He still sees a lot of speculation regarding them, once again repeating that this is not healthy for the future of finances.

Crypto adoption’s advancement

The crypto community had quite high expectations of Bitcoin back in 2017 when the prices surged to previously unimaginable heights. However, the adoption of the crypto trend ended up being a lot slower process than many had previously hoped for.

Still, the adoption is still progressing, albeit slowly, and many have found it interesting that Trichet’s new wave of bashing digital coins came just as rumors that China might relax its crypto regulations started to emerge. China has had a major shift in attitude towards crypto and blockchain technologies recently, with its president recently praising the blockchain, while the country revoked its suggestion that crypto mining should be banned.

Trichet concluded by saying that the world is already in a domain with much less physical currency. While he admits that physical money might be left behind, he is against the idea that cryptocurrencies should be the ones to replace it.

About the author

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Ali Raza
A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.

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