Sweden Central Bank Latest to Declare Bitcoin an Asset; not Money
Cecilia Skingsley, the Deputy Governor of the Central Bank of Sweden, has become the latest figure in the world of banking to declare that Bitcoin is not money.
At Switzerland’s World Economic Forum on Thursday, Skingsley was quoted as saying:
In my view, cryptocurrencies; Bitcoin and the others; the way I’ve seen them so far, they don’t meet the criteria to be called money. They can be called an asset… but they are not a very good version of money because it’s not a very stable store of value where they fluctuate a lot. And it’s not a very efficient medium of exchange because you don’t buy your groceries with Bitcoin.
Not the First to Put Forward Such Concerns
Crypto has come under fire a lot in recent months, with claims of a bubble being reinforced by a massive drop at the start of the year. The notion of Bitcoin not being a “store of value” echoes the words of Lloyd Blankfein, the Goldman Sachs CEO, in an interview with Bloomberg last year. That said, Goldman Sachs have aligned themselves far more with crypto in the last couple of months, despite simultaneously warning customers of a perceived bubble.
And while the Central Bank of Sweden have considered using the concept of a digital currency themselves, as a solution to the rapid decline in cash usage in Sweden, the currency would be fiat and they have not yet come to a conclusion as to whether any new currency would even use blockchain technology.
And others at the World Economic Forum were even harder on crypto than Skingsley. Nobel prize winner Dr Joseph Stiglitz called for a blanket ban, and for the powers that be to “regulate it out of existence”.
What do you think about these comments? Is Crypto’s Time Limited? Let us know your thoughts in the comments below.