- Central Bank of Sweden, Sveriges Riksbank, has taken it to the social media platform Twitter, to discuss Bitcoin.
- Central Bank of Sweden argues that the crowned asset fails as a value preserver, because of its extreme prices.
- Bank also says that the dominant crypto asset usually does not fulfill three functions, which is why it cannot be considered money.
Bitcoin Is Not Money
The Swedish central bank, Riksbank, believes that Bitcoin and altcoins are not money in, a long Twitter discussion.
Bitcoin’s price is very volatile, making the largest virtual currency a bad store of value.
Although it has been there since 2009, Bitcoin has yet to achieve substantial momentum as a means of trade with retailers.
According to Coinmap, 29,651 locations throughout the world take cryptocurrency. Compared to Visa’s network of businesses, which covers over 60 million sites, this is a drop in the bucket.
Because the value of Bitcoin changes so often, it’s difficult to price items with it. As a result, the biggest cryptocurrency cannot be used as a monetary unit.
Riksbank has concluded that its evaluation applies to all prominent cryptocurrencies.
Previous year, Riksbank Governor Stefan Ingves contrasted Bitcoin trade to stamp trading, anticipating that private money would eventually disappear.
Meanwhile, the Swedish central bank is working on constructing its own virtual currency, the e-krona.
Riksbank said last month that it had completed a successful experiment to connect its CBDC with older financial institutions.
After years of investigation, the central bank has yet to determine whether or not to issue e-krona. Before making such a move, it seeks to resolve technical difficulties, including locating potential suppliers.
Although being a part of the European Union, Sweden does not utilize the euro as its currency. It is on course to become the 1st cashless society globally by 2023.
However, many countries think highly of Bitcoin. For instance, El Salvador adopted the dominant crypto asset as its legal tender back in September 2021.
Source: https://www.thecoinrepublic.com/2022/05/28/central-bank-of-sweden-does-not-think-highly-of-bitcoin/