Sweden’s Central Bank Riksbank argued that Bitcoin and other cryptocurrencies are not money.
According to the bank, Bitcoin’s price has a volatility that makes the largest crypto asset a weak store of value.
Bitcoin has been around since 2009, but it doesn’t have much use as a means of payment. According to data provided by Coinmap, 29,651 venues worldwide accept cryptocurrencies. That’s a small number compared to Visa’s network of 60 million. Due to the volatile nature of the asset, pricing products with Bitcoin also presents various difficulties.
According to Riksbank, this assessment also applies to other cryptocurrencies. Last year, Riksbank President Stefan Ingves stated that these funds will disappear sooner or later.
Riksbank continues to work on its own CBDC called e-krona. The bank announced last month that it is conducting a successful trial to integrate CBDC into legacy banking systems.
The central bank, however, has not made a final decision on whether to issue e-krona or not.
Although Sweden is a member of the European Union, it does not use the euro as its currency. It is on its way to becoming the world’s first cashless society by 2023.
