81 Interactions, 6 Today
Sveriges Riksbank Governor Stefan Ingves cautioned at a Swedish banking conference that private money “generally collapses sooner or later.”
The governor of Sweden’s central bank, Sveriges Riksbank, has dismissed Bitcoin (BTC) as a completely implausible alternative to government-backed fiat currencies.
Speaking at a banking conference in Stockholm, Sveriges Riksbank governor Stefan Ingves argued, “Private money usually collapses sooner or later.” In a further disparaging remark, he claimed, “Sure, you can get rich by trading in bitcoin, but it’s comparable to trading in stamps.”
Notwithstanding Ingves’ view of Bitcoin’s weaknesses as a currency, he has taken its popularity among investors seriously. Highlighting consumer interests and money laundering as being of particular concern, the central banker conceded this June that the cryptocurrency had gotten “big enough” to merit close attention from regulators, central bankers and lawmakers across the globe.
Ingves’ low opinion of Bitcoin hasn’t stopped the Riksbank from appropriating its underlying technology for its own central bank digital currency development effort. Sweden’s e-krona is based on a proof-of-concept built on Corda, an R3 distributed ledger technology solution. According to the most recent report on the e-krona pilot, trials are progressing, with virtual individuals collaborating with real-world actors, especially Sweden’s retail bank chain, Handelsbanken.
While the Riksbank’s policy is consistent with that of most central banks and governments, El Salvador’s extraordinary government-mandated adoption of Bitcoin as legal cash occurred this week. Despite Salvadorans’ anxieties about their government’s move, Cardano founder Charles Hoskinson and whistleblower Edward Snowden have this week claimed that other nation-states could also eventually incorporate the coin into their own monetary policy.