Jean-Claude Trichet, a former president of the European Central Bank, believes that bitcoin is “unrealistic” and cannot become the currency of the future. He expressed this at the Caixin conference in Beijing.
Doubts of Jean-Claude Trichet
A financial expert believes that buying a cryptocurrency is speculation even when the crypto-asset is backed by a real asset. During the event, he commented as follows:
“I am categorically against Bitcoin, and I think that the currency itself is not real, because it does not have the characteristics that the currency should have”
Jean-Claude Trichet admitted that he is a fan of the Facebook`s Libra stablecoin and prefers special drawing rights (SDR) from the International Monetary Fund. At the same time, he also noted that, although fiat money may be left behind, cryptocurrencies cannot replace them.
Trichet's comments echo the concerns of all global central banks in terms of the threat that cryptocurrencies carry to decentralize traditional currencies, destroying the global financial system and preventing monetary authorities from controlling the value of money.
A quick return to the starting price convinced market participants to use the pumpPump & Dump
– is a manipulative gambling scheme with a view to making quick money. The essence of the scheme is an artificial increase in the exchange rate of the currency on the market, the stock exchange with its subsequent collapse, or vice versa: a collapse followed by a rise. Details and dump scheme. Despite warnings from experienced market players, traders continue to lose money due to whale games – adherents of the “pump and dump” tactics.