Bitcoin, Not Cash Claims the Swedish Central Bank

According to the Riksbank, Bitcoin has failed as a store of value, a means of trade, and a unit of account. The Swedish central bank, Riksbank, claims that Bitcoin and other cryptocurrencies are not money in a lengthy Twitter discussion. Bitcoin’s price is very volatile, making the largest cryptocurrency a poor store of value.

Är kryptovalutor pengar? Nej. I den här tråden förklaras varför Riksbanken definierar till exempel Bitcoin och Ethereum som tillgångar och inte valutor. #Krypto #Bitcoin #BTC #Ethereum #Riksbanken 1/9 ?

— Sveriges riksbank (@riksbanken) May 20, 2022

Regardless of the fact that it has been there since 2009, Bitcoin has yet to achieve substantial momentum as a means of trade with merchants. Coinmap estimates that 29,651 locations throughout the world accept cryptocurrency. When compared to Visa’s merchant network, which spans over 60 million locations, this is just a meager amount. Due to the value of Bitcoin changing so often, it’s difficult to price items with it. As a result, the largest cryptocurrency cannot be used as a unit of account.

The Riksbank has decided that its findings apply to all prominent cryptocurrencies. Last year, Riksbank Governor Stefan Ingves compared Bitcoin trading to stamp trading, warning that private money would eventually disappear. Meanwhile, the Swedish central bank is working on the creation of its own digital currency, the e-krona.

Riksbank said last month that a test to connect the CBDC into legacy banking systems had been successful. After years of investigation, the central bank has yet to decide whether or not to issue e-krona. Before making such a move, it seeks to resolve technical difficulties, including locating potential suppliers.

Despite being a member of the European Union, Sweden does not utilize the euro as its currency. It is on course to become the first cashless society in the world by 2023.

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