Norway Central Bank Governor: Bitcoin is ‘Too Costly’ to be Used and Doesn’t Preserve Stability
The world’s most cashless country doesn’t want its people to use Bitcoin as an alternative.
Norway has been steadily moving towards a cashless society, but the country’s central bank governor says people shouldn’t turn to Bitcoin as an alternative.
Oystein Olsen, the governor of Norges Bank in Oslo, says it’s inconceivable that Bitcoin will replace the fiat currency controlled by central banks, adding that while people like to talk about it, Bitcoin won’t be a threat to central banks.
Bitcoin is “far too resource-intensive, far too costly, and most importantly, it doesn’t preserve stability,” Olsen said in a phone interview.
“I mean, the basic property and task for a central bank and central-bank currency is to provide stability in the value of money and in the system, and that is not done by Bitcoin.”
Recently, Kjell Inge Rokke, one of Norway’s most prominent businessmen, endorsed Bitcoin, saying it will ultimately be on the right side of monetary history. His Aker ASA also invested $58.6 million in Bitcoin and set up a new unit to establish Bitcoin mining operations and to invest throughout the Bitcoin ecosystem.
Trading above $54k, the leading cryptocurrency has become a trillion-dollar asset this year. According to Kjell, BTC price might one day even be “worth millions of dollars.”
The crypto asset hit a new ATH at nearly $62k earlier this month, surging more than 15x from its March low as institutions, hedge funds, high-net-worth individuals, pension funds, and insurance firms increasingly join the crypto market and invest in Bitcoin.
CBDC Won’t Disrupt The Private Sector
Amidst the growing interest and adoption of crypto assets, central banks from China, Sweden, Japan, and the US are developing their own digital versions of fiat currencies.
While Norway has become the world’s most cashless country, with only 4% of all payments conducted with coins and banknotes, as shared by Norges Bank Deputy Governor Ida Wolden Bache last November, the country isn’t leading in central bank digital currencies (CBDC).
Norges Bank, however, is due to publish a report on its CBDC project next month, which the officials affirm “will not change private sector credit intermediation.”
Earlier this month, Wolden Bache said the goal is that users “must be able to pay efficiently and securely in” Norwegian kroner.