Home News Trading Bitcoin is like trading stamps, says Swedish central bank governor

Trading Bitcoin is like trading stamps, says Swedish central bank governor

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Investing in Bitcoin is like trading stamps, says the Swedish central bank governor. Sveriges Riksbank Governor Stefan Ingves cautioned at a Swedish banking conference that private money in most cases “disintegrate sooner or later”.

Sweden’s central bank governor, Sveriges Riksbank, has rejected Bitcoin (BTC) as an implausible alternative to government-backed fiat currencies.

Private money typically collapses sooner or later

“Private money typically collapses sooner or later,” Sveriges Riksbank governor Stefan Ingves said at a banking conference in Stockholm. “Sure, you can get wealthy trading bitcoin, but it’s equivalent to selling stamps,” he said in a further scathing comment.

Despite Ingves’ assessment of Bitcoin’s shortcomings as a currency, he has taken the currency’s appeal among investors seriously. The central banker said in June that the cryptocurrency has grown “large enough” to warrant serious scrutiny from regulators. As well as central bankers, and politicians throughout the world. Citing consumer interests and money laundering as specific concerns.

Sweden’s e-krona

The Riksbank has also taken use of BTC’s core tech for its own digital currency development initiative, despite Ingves’ poor opinion of the crypto. Sweden’s e-krona is based on a proof-of-concept developed by R3 and based on Corda, a distributed ledger technology solution. According to the most recent report on the e-krona pilot, tests are proceeding. With virtual users working with real-world entities, particularly Handelsbanken, Sweden’s retail bank group.

While the Riksbank’s policy is similar to that of other central banks and governments, El Salvador has become the first country to require the use of Bitcoin as legal currency. Despite Salvadorans’ concerns about the government’s decision, Cardano founder Charles Hoskinson and whistleblower Edward Snowden stated this week that other countries may ultimately adopt the cryptocurrency.

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