Taunts and criticism are not something new for cryptocurrencies, especially for Bitcoin. During the last couple of weeks, a significant increase in criticism against Bitcoin has been witnessed. The majority of depreciators belong to the banking system from all over the globe. The latest example of criticism is provided by a French economist Jean Claude Trichet. He worked as a president of the European Central Bank for eight years.
In a recent television interview, Trichet stressed the need and requirement that the crypto world must be made transparent. He also displayed his reservations regarding possible criminal activities related to cryptocurrencies. Transparency is required in transactions; otherwise, the risk of criminal activities cannot be minimized. Many bankers have already shown this concern in the past on different platforms.
Negligence on transparency will result in scandals like the pseudocide of QuadrigaCX CEO Gerald Cotton when more than a hundred thousand people lost their investment.
Previously in 2018, at the Caixin’s conference, Trichet said that digital currencies are not real. Now he has said that, according to him, real digital currencies will be the ones produced by central banks. It means that bankers have no problem with cryptocurrency if it is not decentralized.
He further informed that 58 central banks are trying to launch their own cryptocurrencies. A report was published with the title CBDCs on 23rd June, one day prior to Trichet’s interview. In the report, the Bank for International Settlements supported CBDCs (Central Bank digital currency). The report said that digital currency is not needed at all in the presence of traditional money.
Trichet has already declared in the past that he is against Bitcoin and asked people not to be complacent about it. He said that Bitcoin lacks the essential attributes of a currency.
Bitcoin and altcoins have been receiving criticism from bankers and regulators continuously. Former Director-General of European Bank Aurel Schubert predicted in 2020 that the future does not have a place for Bitcoin at all, and it will be reduced to a piece of display in Museums only.
Earlier, the Basel Committee whipped the crypto assets by saying that the banking sector is facing serious risks such as money laundering and volatility from digital currencies. The panel suggested that 1,250% risk weight must be applied if a bank exposes itself to Bitcoin or any other digital currency.