The governor of Sweden’s central bank, Sveriges Riksbank, has dismissed Bitcoin (BTC) as a completely far-fetched alternative to government-backed fiat currencies.
At a banking conference in Stockholm, Governor Stefan Ingves argued: “Private money usually falls apart sooner or later.” In another comment he stated, “Sure, you can get rich trading Bitcoin, but it is like trading postage stamps.”
Despite Ingves’ views on Bitcoin’s weaknesses as a currency, he still appreciates its popularity with investors. The central bank highlighted consumer concerns and money laundering as particular concerns, admitting in June this year that cryptocurrencies have become “big enough” to be noticed by the public, regulators, central bankers and lawmakers around the world.
Also, Ingves’ low estimate of Bitcoin (BTC) did not prevent the Riksbank from leveraging its underlying technology in favor of its own central bank digital currency development project. Sweden’s e-krona uses a proof-of-concept based on Corda, a distributed ledger technology solution from R3. The latest update to the e-krona pilot project are ongoing trials with simulated participants who work with real parties, namely the Swedish retail banking chain Handelsbanken.
Related: Riksbank says Bitcoin’s growing popularity will lead to more regulation
While the Riksbank’s approach works for most central banks and governments, El Salvador saw the unprecedented adoption of Bitcoin as legal tender by the government this week. Despite El Salvador’s concerns about the government’s move, Cardano founder Charles Hoskinson and whistleblower Edward Snowden have stated that other countries may eventually incorporate the currency into monetary policy as well.