Bank of Sweden governor Stefan Ingves criticized Bitcoin and said the cryptocurrency could never become an alternative to national currencies backed by world governments. During his speech at a recent banking conference in Stockholm, Ingwes suggested that “private money will sooner or later disappear” because of its own collapse. We tell you more about what’s going on.

It should be noted that bank representatives often have a negative attitude to decentralized assets. For example, in July 2021, Swiss bank UBS recommended its clients not to get involved with the digital asset industry. According to representatives of the institution, as a result, regulators will “burst” the niche of cryptocurrencies, of which after that allegedly nothing will be left. You can read more about the bankers’ position at the link.

That said, there are exceptions. In August, it was reported that one of the largest banks in the U.S., PNC Bank, would offer its users to interact with cryptocurrencies. That is, in essence, the bank wants to become an intermediary for the purchase of coins.

What’s wrong with Bitcoin?

At the same time as criticizing, the head of the Bank of Sweden did not rule out the possibility that cryptocurrency could actually make many people rich.

Sure, you can get rich by trading Bitcoin. But it’s more like trading stamps.

That is, in this way, the head of the Bank of Sweden called cryptocurrency useless in the world and only for those associated with the industry. We do not agree with this point of view. First of all, BTC and other cryptocurrencies allow sending value to a resident of any country without the permission of officials and centralized bodies. And this feature alone is enough to not consider Bitcoin a “brand”.

This is not the first time the head of the Swedish Central Bank has touched upon the issue of cryptocurrencies. At the beginning of June, he said that Bitcoin has become quite a mass phenomenon, so now it cannot avoid constant attention from financial regulators. At the same time, Ingves did not forget to mention the negative features of the cryptosphere, such as fraud and money laundering.

According to Cointelegraph, Ingwes’ radical attitude toward Bitcoin has not prevented the country’s central bank from developing a national digital currency called e-krona. The project is still running in test mode on the proof-of-concept algorithm from Corda, a decentralized solution developed by R3.

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Alejandro Diaz de León, head of the Central Bank of Mexico, also does not see Bitcoin as something too extraordinary for economic development. In a recent interview, he said that the country is unlikely to follow in the footsteps of El Salvador, where BTC recently became legal tender. Here’s his quote on the subject.

If someone receives bitcoins in exchange for a good or service, that transaction should be classified as barter, because it’s an exchange of goods for goods. It’s not really buying something for money.

In other words, the banker does not consider BTC to be full-fledged money, so the adoption of cryptocurrency in Mexico does not look possible to him. Leon also made an important point about Bitcoin’s volatility: the asset changes in price too often, and its active introduction into the national economy is fraught with negative consequences.

People don’t want their purchasing power to rise or fall 10 percent from day to day. Volatility acts as a disadvantage in this matter, meaning that Bitcoin is not a good option to preserve value.

Note that in this case, representatives of the classical financial system emphasize precisely on Bitcoin’s falling value, but somehow forget about its ability to grow. Even taking into account the current value of BTC, which is far from its maximum value, the cryptocurrency’s rate is still 337 percent higher than it was a year ago. And that’s more than any bank product offers for investment.

As you can see, there are still many financiers at major global institutions who are distrustful of Bitcoin. Its legalization in El Salvador will now become a success marker for the entire digital asset industry – if the country manages to profitably realize the potential of cryptocurrencies, it is quite possible that other states will soon make it a legal medium of exchange in their territory. And then digital assets are sure to be massively accepted.