The crypto-space is no strangers to sneers and jabs, which come in the form of blowback from certain governments and warm embraces from others.
Bitcoin and other cryptocurrencies have long been criticized, particularly by bankers all around the world. Jean Claude Trichet, a French economist, is the most recent to do so.
Trichet, who was the President of the European Central Bank from 2003 to 2011, recently stated on television that there is a need for “absolute transparency” in crypto.
He also raised regret about illegal activity linked to cryptocurrency, a belief shared by many other bankers. According to Trichet,
“We need absolute transparency. As long as these transactions are not transparent, they are paving the way for any criminal activity. It’s unacceptable and it’s not considered appropriate at an international level”
The former ECB president went on to say,
“The real cryptocurrencies will be issued by central banks, 58 central banks around the world are already working on their own digital currencies actively.”
The Bank for International Settlements (BIS) released a paper titled “CBDCs: an Opportunity for the Monetary System” on June 23, just one day before Trichet’s visit.
The BIS emphasized its backing for CBDCs and its role in modernizing finance in this report.
The crypto-space is no stranger to snide remarks and jabs, which come in the form of blowback from certain governments and warm embraces from others.
BTC and other cryptocurrencies have long been criticized, particularly by bankers all around the world. Jean Claude Trichet, a French economist, is the most recent to do so.
Trichet, who was the President of the European Central Bank from 2003 to 2011, recently stated on television there would be a need for “absolute transparency” in crypto.
The banker also expressed concern about nefarious activities linked to cryptocurrency, a belief shared by many other bankers.
“We need absolute transparency. As long as these transactions are not transparent, they are paving the way for any criminal activity. It’s unacceptable and it’s not considered appropriate at an international level”, said Trichet.
Trichet further added,
“The real cryptocurrencies will be issued by central banks, 58 central banks around the world are already working on their own digital currencies actively.”
The Bank for International Settlements (BIS) released a paper titled “CBDCs: an Opportunity for the Monetary System” on June 23, just one day before Trichet’s visit.
The BIS reaffirmed its support for CBDCs and its role in modernizing finance in this report.
However, that’s not the first time the former ECB chief has shown his opposition to cryptocurrencies. At a Caixin conference in Beijing in 2018, Trichet stated that cryptocurrencies are “not real.”
“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”
Cryptocurrency continues to be a love-hate relationship for regulators….
Banks, authorities, and bankers all over the world have indeed been critical of cryptocurrencies like Bitcoin.
BTC according to Aurel Schubert, the former Director-General of the European Central Bank, “has no future” and will be “on display in the Museum of Illusions” sooner or later in 2020.
According to the BIS research, digital tokens such Bitcoin have few redeeming features and “work against the public good.”
Stablecoins were also seen as an “appendage” to traditional money, according to the report. CBDCs, on the other hand, were praised in the report as “a tool to create broader financial inclusion and lower the high costs of payments.”
The Basel Committee chastised crypto-assets and Bitcoin earlier this month, stating that cryptocurrencies pose significant risks to the banking system due to the possibility for money laundering, reputational issues, and extreme volatility that might result to defaults.
A 1,250 percent risk weight should be added to a bank’s exposure to Bitcoin and other crypto-assets, according to the panel.
