Sweden’s banking chief dismisses Bitcoin as ‘stamp trading’

"Private money usually collapses sooner or later," says nation's top banker

Stefan Ingves, the governor of Sweden’s central bank, has given Bitcoin the short shrift.

Speaking 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 in Bitcoin, it was comparable to “trading in stamps”.

Ingves – governor of Sveriges Riksbank – also recently stated that Bitcoin and other cryptocurrencies were unlikely to escape regulatory oversight as their popularity grows.

Wael Makarem, senior market strategist at Swedish trading broker Exness, believes the Scandinavian nation largely viewed cryptocurrency’s volatility with trepidation.

“Investors are cautious about the current fluctuations in Bitcoin and Ethereum, especially as these benchmarks failed to trim earlier losses, which is usually considered a sign of weakness in the crypto market,” he said.

“On the other hand, the headlines from EU regulators coming closer to implementing new regulations for cryptocurrencies, new anti-money laundering rules and tax reporting requirements adds downside pressure.”

Makarem added that he also thinks investors were afraid of tough rules and regulations that could limit the adoption or use of digital assets.

Europe still suspicious of crypto

Ingves’s comments are generally in line with what other central bankers have said about cryptocurrencies. In February, Gabriel Makhlouf – governor of the Central Bank of Ireland – said Bitcoin investors should be prepared to lose all their money.

“Personally, I wouldn’t put my money into it, but clearly, some people think it’s a good bet,” he said.

“People put money into tulips because they thought it was an investment.”

Also, in May, Bank of England governor Andrew Bailey commented that cryptocurrencies had no intrinsic value and could crash to zero.

READ MORE: Tether receives remaining 550 million bitfinex loan payment

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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