Stefan Ingves, the governor of Sweden’s central bank, has given Bitcoin the short cut.
At a banking conference in Stockholm, Ingves said that “private money usually collapses sooner or later”. He added that although it was possible to get rich by trading Bitcoin, it was comparable to “stamp trading”.
Ingves – Governor of Sveriges Riksbank – also recently stated that Bitcoin and other cryptocurrencies are unlikely to escape statutory supervision as their popularity grows.
Wael Makarem, senior marketing strategist at the Swedish trading broker Exness, believes that the Scandinavian nation was very concerned about the volatility of the cryptocurrency.
“Investors are wary of the current fluctuations in Bitcoin and Ethereum, especially as these benchmarks have failed to trim past losses, which is generally considered a sign of weakness in the crypto market,” he said.
“On the other hand, the headlines from EU regulators that will come closer to implementing new regulations for cryptocurrencies, new rules against money laundering and tax reporting requirements are adding downward pressure.”
Makarem added that he also believes that investors were afraid of harsh rules and regulations that could restrict the adoption or use of digital assets.
Europe still suspects crypto
Ingve’s comments are generally in line with what other central banks have said about cryptocurrencies. In February, Gabriel Makhlouf, governor of Ireland’s central bank, said that Bitcoin investors should be prepared to lose all their money.
“Personally, I would not put my money on it, but it is clear that some people think it is a good bet,” he said.
“People put money into tulips because they thought it was an investment.”
In May, Bank of England Governor Andrew Bailey also commented that cryptocurrencies had no intrinsic value and could crash to zero.