The Sveriges Riksbank governor, Sweden’s central bank has dismissed Bitcoin (BTC), as a far-fetched alternative for government-backed fiat currencies.
At a Stockholm banking conference, Governor Stefan Ingves stated that “Private money often collapses sooner than expected.”
Ingves is aware of the weaknesses of Bitcoin as a currency but he takes its popularity seriously. The central banker highlighted consumer concerns and money laundering, and said this June that Bitcoin had become “big enough” for regulators, central banksers, and lawmakers around the world to pay close attention.
The Riksbank has not been able to co-opt its technology in order to benefit from its central bank digital currency development program, despite Ingves’ low Bitcoin (BTC) estimation. Sweden’s electronic currency, e-krona, uses a proof of concept based on Corda (a distributed ledger technology solution by R3). Latest update about the e-krona pilot: Experiments are in progress that involve simulated participants cooperating with real-world actors. This includes Handelsbanken, Sweden’s retail banking chain.
Related: Riksbank says that Bitcoin’s popularity is leading to increased regulation
Although Riksbank’s approach aligns with most central banks and government, El Salvador has adopted Bitcoin as legal currency this week. Despite El Salvadoreans’ concerns about the government’s decision, Cardano founder Charles Hoskinson (whistleblower Edward Snowden) have claimed this week that other nations could eventually include the cryptocurrency in their monetary policies.