The Swedish Central Bank Does Not Consider Bitcoin To Be A Currency.
Sveriges Riksbank (“Riksbank” for short), Swedish central bank, has gone to Twitter to dispute whether Bitcoin is a currency.
According to the Swedish central bank Riksbank’s official Twitter account, Bitcoin must meet three severe conditions in order to be designated a currency: operate as a custodian (store of value), offer a means of payment, and be a unit of account. While the tweets continue to clarify each issue, the central bank eventually concluded that Bitcoin and other cryptos are assets rather than currencies.
Because of its extreme price fluctuation, Bitcoin, according to Sweden‘s central bank, fails as a “value preserver.” According to the bank, currency users should have faith that the item they are about to purchase will remain largely price stable over time.
The bank also questions Bitcoin’s legitimacy as a payment method, noting that “there is no exact figure on how many companies accept Bitcoin” as payment. As a proxy, the bank compares Coinmap’s listing of Bitcoin ATMs — approximately 29,500 worldwide — to Visa, which is accepted by over 60 million shops worldwide.
According to the Riksbank, Bitcoin also fails as a unit of account due to its incapacity to act as a store of value or a means of payment. In addition, the central bank points out that governments always price items in their own currency rather than Bitcoin.
“Bitcoin generally does not fulfill the three functions and is thus not money, at least not in the sense that it functions as money in the traditional financial system and in society.” the bank finds. The tweet also applies its logic to other cryptocurrencies, including Ethereum.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Patrick
CoinCu News
Author
Bitcoin
The Swedish Central Bank Does Not Consider Bitcoin To Be A Currency.
Sveriges Riksbank (“Riksbank” for short), Swedish central bank, has gone to Twitter to dispute whether Bitcoin is a currency.
According to the Swedish central bank Riksbank’s official Twitter account, Bitcoin must meet three severe conditions in order to be designated a currency: operate as a custodian (store of value), offer a means of payment, and be a unit of account. While the tweets continue to clarify each issue, the central bank eventually concluded that Bitcoin and other cryptos are assets rather than currencies.
Because of its extreme price fluctuation, Bitcoin, according to Sweden‘s central bank, fails as a “value preserver.” According to the bank, currency users should have faith that the item they are about to purchase will remain largely price stable over time.
The bank also questions Bitcoin’s legitimacy as a payment method, noting that “there is no exact figure on how many companies accept Bitcoin” as payment. As a proxy, the bank compares Coinmap’s listing of Bitcoin ATMs — approximately 29,500 worldwide — to Visa, which is accepted by over 60 million shops worldwide.
According to the Riksbank, Bitcoin also fails as a unit of account due to its incapacity to act as a store of value or a means of payment. In addition, the central bank points out that governments always price items in their own currency rather than Bitcoin.
“Bitcoin generally does not fulfill the three functions and is thus not money, at least not in the sense that it functions as money in the traditional financial system and in society.” the bank finds. The tweet also applies its logic to other cryptocurrencies, including Ethereum.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Patrick
CoinCu News
Other Posts
Related Posts
Latest
Press Release
New York Techie Bagged $72M from $15K Investment in Ethereum — Here’s How BlockDAG Can Offer Similar Jackpot
Best Altcoins to Buy Today: Qubetics Rides 1000x Potential to Hit $2.6M, Ethereum Stays Rangebound, Tron USDT Transactions Hit $52B
