Despite the endless benefits associated with Bitcoin (BTC), as noted by several financial experts, Swedish Central Bank Governor Stefan Ingves said investing in the popular cryptocurrency is comparable to private label.
Bloomberg reported today that the top Swedish bank governor, speaking at a banking conference in the country’s capital – Stockholm – said that Bitcoin’s value as a trademark could eventually plummet if it doesn’t get the support it needs from the government.
“Private money usually collapses sooner or later,” said Governor Ingves.
Despite his sharp comments on the world’s largest cryptocurrency, Ingves acknowledged the fact that people got rich trading Bitcoin.
However, he still believes the cryptocurrency is comparable to postage stamps and will eventually die out without government support.
The collapse of private labels
Remember that private labels became popular in the 17th century. The concept called for retailers to issue printable postage stamps to their customers as part of their customer loyalty efforts.
The stamps that could be redeemed for cash were very popular in the USA, Great Britain and Japan at the time.
The initiative collapsed, however, and evolved into loyalty rewards programs in the late 20th century.
Bitcoin’s popularity could lead to stricter regulations
Bitcoin has grown significantly since the beginning of the year, which has led to widespread acceptance among private and institutional investors.
Although the asset suffered its biggest slump in May due to comments from Elon Musk and China’s crackdown on cryptocurrencies, the asset has continued to grow in popularity with many.
Bitcoin’s popularity in several parts of the world led Ingves to state that the cryptocurrency will face stricter regulation because of its fame.
“When something gets big enough, things like consumer interests and money laundering come into play. So there is good reason to believe that [regulation] will happen, ”Ingves said in a report released by Bloomberg in June.
Sweden uses blockchain for its CBDC
While it is evident that the Ingves are not a fan of Bitcoin, the Swedes have adopted the technology that powers several cryptocurrencies to develop their central bank digital currency (CBDC) called e-krona.
Reportedly, the country announced through its finance minister that it is considering introducing e-krone as a payment method by November next year.