The crypto space isn’t new to criticism and taunts that come amid backlash from some countries and sweet assumptions from others. Bitcoin and other cryptocurrencies have always drawn strong criticism, especially from bankers around the world. The youngest is the French economist Jean Claude Trichet.
During one recently TV appearance, said Trichet, who was President of the European Central Bank from 2003 to 2011, that crypto needs “absolute transparency”. The banker also raised concerns about criminal activity related to cryptocurrencies, an idea many other bankers had before. Trichet said
“We need absolute transparency. As long as these transactions are not transparent, they pave the way for all criminal activity. That is unacceptable and is not considered appropriate at the international level. “
The former ECB chief added:
“The real crypto currencies are issued by central banks, 58 central banks worldwide are already actively working on their own digital currencies.”
On June 23, just one day before Trichet’s appearance, the Bank for International Settlements (BIS) released a report titled “CBDCs: An Opportunity for the Monetary System”. In this report, the BIS highlighted its support for CBDCs and underlined its role in modernizing the financial system.
However, this is not the first time the former ECB chief has voiced his rejection of cryptocurrencies. In 2018 Trichet attended the Caixin Conference in Beijing said Cryptocurrencies are “not real”.
“I’m strong against Bitcoin and I think we’re a little complacent. The [crypto]Currency itself is not real, with the properties that a currency must have. ”
Regulators’ love-hate relationship with crypto continues
Cryptocurrencies and Bitcoin have been criticized by banks, regulators and bankers around the world. In 2020 Aurel Schubert, the former General Director of the European Central Bank, said that Bitcoin “has no future” and will sooner or later be seen “in the Museum of Illusions”.
The above-mentioned report published by the BIS argued that digital tokens like Bitcoin have few redeeming functions and “work against the public good”. It also disapproved of stablecoins, calling them an “appendage” of traditional money. However, the report supported CBDCs by describing them as “a tool to achieve greater financial inclusion and reduce high payment costs”.
Earlier this month, the Basel Committee beat up crypto assets and bitcoin, stressing that the banking industry is exposed to high risks from cryptocurrencies due to the potential for money laundering, reputational problems and high volatility that could lead to payment defaults. In addition, the panel proposed applying a 1,250% risk weight to a bank’s exposure to Bitcoin and certain other crypto assets
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