According to the European Central Bank’s former president Jean-Claude Trichet, Bitcoin (BTC) lacks the characteristics of a currency and is purely speculative. This was reported by a Chinese news outlet South China Morning Post reported on November 10th.
Trichet also expressed doubt that cryptocurrencies could ever become the future of money. He said that Bitcoin lacks the characteristics of a real currency:
“I am strongly against Bitcoin, and I think we are a little complacent. […] The currency itself is not real, with the characteristics that a currency must have.”
Trichet explained that he believes buying cryptocurrency is just speculation.
He said he is not a fan of Facebook’s proposed Libra stablecoin and noted that he, unsurprisingly, prefers the Special Drawing Rights (SDRs) issued by the International Monetary Fund.
SDRs are backed by a basket of currencies, including the U.S. dollar, the euro, the pound sterling, renminbi and yen. He said:
“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.”
Trichet said that while the world may be leaving banknotes and coins behind, Cryptocurrencies could not be the future.