Sweden’s Central Bank Chief Cautions Against Bitcoin Integration Due to Speculative Nature
Sweden’s Central Bank Governor, Erik Thedeen, warned against substantial Bitcoin integration into the nation’s financial system on March 12, citing its speculative nature and potential investor losses.
The Riksbank governor emphasized that Bitcoin doesn’t belong in Sweden’s financial system, stating that “the less, the better” for Bitcoin integration. Riksbank is Sweden’s central bank, overseeing its monetary policy and issuing its Swedish krona currency.
Thedeen’s cautionary stance on Bitcoin comes at a time when the cryptocurrency has reached new record highs. Sweden’s central bank governor has now warned of possible losses to crypto users within Sweden’s financial system.
Sweden's central bank governor throws shade at #Bitcoin.
Wants to limit it in the financial system due to:
1. Difficulty valuing it (no real backing)
2. Potential for consumer losses (remember those exchange crashes?)#Crypto
— MaMolefe (@Kealeboga___) March 12, 2024
In light of this, Thedeen emphasized that he’s working to keep Bitcoin trading outside of Sweden’s financial space.
He spoke to the media after a parliamentary discussion on monetary policy, addressing the valuation of Bitcoin.
The Riksbank Governor said that Bitcoin’s valuation is solely dependent on conjecture. This speculative valuation deters the practicality of its adoption.
Backed up his argument, Theeden mentioned the recent failure of cryptocurrency exchanges during an unprecedented bull run in the cryptocurrency market, which was driven mostly by Bitcoin.
The bank’s chief also discussed cryptocurrency’s implications for the stability of financial systems. He said that Bitcoin doesn’t alter Sweden’s financial system’s stability, but consumers risk losing investments.
He cited the example of
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