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Chairman of the Central Bank of Sweden: Buying Bitcoin is comparable to trading postage stamps

Bitcoin and cryptocurrencies in general have long been a controversial topic. There are many terms for what cryptocurrencies claim to be, but they are not always: decentralized, secure, fair, valuable, stable, one currency, honest, one solution, the future. Like many other central bankers, the governor of the Swedish central bank is very skeptical about buying Bitcoin.

The Governor of Sveriges Riksbank’s opinion on Bitcoin

According to a Bloomberg article, the governor of Sveriges Riksbank, Sweden’s central bank, questioned the durability of currencies without government support. He compared buying and selling bitcoins to trading postage stamps.

The governor of Sveriges Riksbank, Stefan Ingves, said at a banking conference in Stockholm:

“Private money usually collapses sooner or later”. He went on to say, “Sure, you can get rich trading Bitcoin, but it is like trading postage stamps.”

Earlier this year, Ingves said that as bitcoin and other cryptocurrencies grow in popularity, they are unlikely to escape regulatory oversight.

Despite his opinion on Bitcoin’s inadequacies as a currency, Ingves has taken Bitcoin’s reputation among investors seriously. By highlighting consumer interests and money laundering as particularly worrying, the central banker admitted in June this year that cryptocurrency had grown “big enough” to deserve the attention of regulators, central bankers and lawmakers around the world.

Cryptocurrencies and Central Bank Governors

Ingve’s remarks are in line with what other central bankers have said about cryptocurrencies. Some central bankers have compared BTC to the 17th century tulip bubble, which ended in collapse.

In February, Irish central bank governor Gabriel Makhlouf said Bitcoin investors should be ready to lose all of their money.

“Personally, I wouldn’t put my money in Bitcoin, but some people obviously think it’s a good bet,” Makhlouf said. “Three hundred years ago, people invested money in tulips because they thought it was an investment.

Similarly, Bank of England Governor Andrew Bailey said that cryptocurrencies have no intrinsic value and could go down to zero.

“I’m sorry, I’ll say it again bluntly: only buy them when you’re willing to lose all your money,” Bailey said. “I just want to emphasize what I have said many times over the years. I’m afraid they have no intrinsic value ”.

Around the world, central banks in countries like China, Ghana, South Korea, Japan, and Switzerland have begun researching, testing, and testing the adoption of central bank digital currencies. The Federal Reserve has also stated that it is studying the pros and cons of creating a CBDC for the United States. Meanwhile, El Salvador made history this week by adopting Bitcoin as legal tender.

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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