The governor of the Swedish central bank, Sveriges Riksbank, has rejected the idea that Bitcoin (BTC) could represent an alternative to government-backed fiat money.
At a recent conference in Stockholm, Stefan Ingves said:
“Usually, private money collapses sooner or later. […] True, you can get rich trading Bitcoin, but it’s comparable to trading stamps. “
Although Ingves believes that Bitcoin is not really usable as a currency, did not underestimate its popularity with investors. Highlighting consumer interests and money laundering as matters of particular concern, the central banker admitted in June that cryptocurrency has become “big enough“to deserve the utmost attention by regulators, central bankers and lawmakers around the world.
Furthermore, Ingves’ low estimate of Bitcoin did not stop Riksbank from leveraging blockchain technology to develop its own Central Bank Digital Currency. Currently the Swedish e-krona is a proof-of-concept based on Corda, R3’s DLT solution. The country continues to test its digital currency, with experiments involving both simulated entities and real participants.
Related: Riksbank: Bitcoin’s Growing Popularity Will Lead to More Regulation
While the Riksbank’s approach is in line with most central banks and governments, this week we saw an unprecedented event: the Central American nation of El Salvador made Bitcoin legal tender. Despite the uncertainties of Salvadorans regarding this choice of government, according to Charles Hoskinson, founder of Cardano, other countries could soon follow El Salvador’s example.