Former European Central Bank President Jean-Claude Trichet had some harsh words for cryptocurrency over the weekend, the South China Morning Post reports. Trichet noted that he’s opposed to Bitcoin and suggested that cryptocurrency should not represent the future of money.
While participating in a panel discussion at the 10th annual Caixin conference in Beijing, the former ECB head said:
“I am strongly against bitcoin, and I think we are a little complacent. The [crypto]currency itself is not real, with the characteristics that a currency must have.”
He suggested that cryptocurrency purchases are mostly speculation and argued that it’s “not healthy.” And while he noted that the world is reducing the amount of physical currency it uses, he expressed doubts about whether cryptocurrency should take its place.
Trichet’s comments come as central banks around the world are debating the potential benefits of technologies like blockchain and cryptocurrency. Some countries, like Tunisia, are already moving toward central bank digital currencies that will be designed as virtual versions of their sovereign currencies.
Trichet suggested that monetary tools like the International Monetary Fund’s Special Drawing Rights (SDR) would be a better option for “keeping control of monetary value,” noting that “In the so-called new stable international currencies … the SDR would be the right basket.”
The SDR’s value is pegged to a basket of currencies that includes the US dollar, euro, pound sterling, renminbi, and yen.