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- Riksbank of Sweden Governor sees bitcoin trading is just like dealing in stamps
- Central Bankers are of the opinion that traders will lose their money in crypto trading
- Cryptocurrencies have no intrinsic value
- Central Banks are looking forward to launching CBDCs
Central Bank of Sweden, Sveriges Riksbank’s governor Stefan Ingves opines that cryptocurrency is not a safe bet for investment. People who are investing in it should be ready to lose their money. While addressing the press conference at the Riksbank headquarters in Stockholm, Sweden, Ingves said that Bitcoin trading is just like dealing in stamps.
According to the Bloomberg report, that non-official money will eventually fail one way or another. Private money usually crashes sooner or later. No doubt, one can get rich by trading in bitcoin, but it is comparable to trading in stamps, said Ingves.
Central Bankers stance on Crypto
His comments are broadly in line with what other Central Bankers opines and feel about cryptocurrency and its usage. In February, the governor of Ireland Central Bank Gabriel Makhoulf said that bitcoin investors should be ready to lose all their money.
He further said that he would never want to invest his money in Bitcoin but clearly, some think it is a good bet. He gave an example for explaining his stance on bitcoin and said that three hundred years ago, people put money into Tulips because they thought it was an investment.
Similarly, Bank of England Governor Andrew Bailey in May said cryptocurrencies have no intrinsic value and may crash to zero. He apologises for his statement being too blunt. He advises consumers that one should only buy them if they think that they are all set to lose their all money. His statement came at a time when Dogecoin was surging to new heights.
Bailey’s comments came following the Central Bank’s interest rate decision. He thinks cryptocurrencies such as Bitcoin have no value in their own right.
Successful launch of CBDCs
Central Banks all over the world are looking to develop their own currency or digital money, known as Central Bank digital currencies. After halting attempts in places like Venezuela and the Marshall Islands to launch CBDCs, the Bahamas was the first to successfully do so nationwide last year.
The Federal Reserve has said that it is researching the pros and cons of creating a CBDC for America, which some have named FedCoin.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
