"I'm not a big believer in bitcoin. I am a believer in blockchain technology," Cohn told CNBC's Bob Pisani in a "Squawk on the Street" interview.
"I do think we will have a global cryptocurrency at some point where the world understands it and it's not based on mining costs or cost of electricity or things like that," he said. Cohn resigned in early March from his role as chief economic advisor to the Trump administration.
Bitcoin is created through an energy-intensive "mining" process that has come to require specialized computer hardware. The cryptocurrency is also the first application of blockchain technology, which eliminates the need for a third-party intermediary by rapidly creating a secure, permanent record of transactions between two parties.