Sunday, August 3, 2025

Latest

Central Banks Cast Doubt on Bitcoin’s Store of Value as Cryptocurrency Grows in Popularity

Although the price of the world’s largest cryptocurrency continues to grow amid escalating popularity, a number of major central banks have been raising doubts about the long-term utility of bitcoin and its inherent volatility.

During a recent Stockholm banking conference, Sweden’s central bank Governor Stefan Ingves warned that bitcoin’s value could dramatically plummet, and compared the cryptocurrency to stamp collecting— in that it lacks validity and long-run feasibility. “Private money usually collapses sooner or later,” he explained, adding that “sure, you can get rich by trading in bitcoin, but it’s comparable to trading in stamps.” Ingves also highlighted that as the popularity of the virtual currency increases, the subsequent regulatory crackdown will also gain traction.

Similarly, Alejandro Díaz de León, the Governor of the Bank of Mexico, likened bitcoin to a barter tool rather than a robust legal tender, referring to the cryptocurrency’s volatile price fluctuations. “Whoever receives bitcoin in exchange for a good or service, we believe that is more akin to bartering because that person is exchanging a good for a good, but not really money for a good,” he said on Thursday, as quoted by Reuters. “People will not want their purchasing power, their salary to go up or down 10% from one day to another. You don’t want that volatility for purchasing power. In that sense, it is not a good safeguard of value.”

Meanwhile, Bank of England fintech director Tom Mutton downplayed bitcoin’s technology, instead suggesting that central bank digital currency transactions will likely be significantly more efficient. “Given its performance shortcomings and energy inefficiency, [it] is in no way a relevant comparison for the sort of technology we might use in a central bank digital currency.”

El Salvador, on the other hand, appears to have a significantly opposing viewpoint on bitcoin. Back in June, El Salvador’s government passed a new law to grant bitcoin legal tender status alongside the US dollar. As of September 7, all businesses across the South American country will be required to accept bitcoin transactions, and El Salvadorians will be able to use the cryptocurrency to make their tax payments.


Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

AngloGold Buys Another Gold Junior! Augusta Gold Acquired For $197 Million

Another Gold Deal! Aris Mining Sells Assets To McFarlane

Royal Gold Goes Big | $3.5 Billion Sandstorm Acquisition

Recommended

Tsunami Warnings Spread As Largest Quake Since 2011 Hits Russia

Northern Superior Intersects 1.75 g/t Gold Over 65.0 Metres At Philibert

Related News

Bitcoin: A Price Ratio Is Flashing A Warning Signal

A ratio which tracks the daily issuance of Bitcoin to cryptocurrency miners has moved into...

Sunday, March 14, 2021, 04:35:00 PM

Bitcoin Price Slips After MicroStrategy Halts Buying Spree

After snapping up bitcoin almost weekly for three months, MicroStrategy (NASDAQ: MSTR) abruptly paused its...

Tuesday, February 4, 2025, 12:14:00 PM

Crypto Bulls Claim Qatar Is Putting $500B On Bitcoin, More Than The Sovereign Fund’s Assets

Rumors are circulating about Qatar’s Sovereign Wealth Fund (QSWF) eyeing a colossal $500 billion investment...

Wednesday, December 6, 2023, 11:21:00 AM

MicroStrategy Unveils $42 Billion Plan to Expand Bitcoin Holdings

MicroStrategy (Nasdaq: MSTR), the world’s largest corporate bitcoin holder, has announced an ambitious three-year plan...

Thursday, October 31, 2024, 10:32:00 AM

Cathie Wood Is Targeting Over US$1 Million Per Bitcoin In 2030 But Her Own Math Might Prove Otherwise

ARK Invest CEO Cathie Wood has a bullish target for the price of bitcoin: over...

Friday, April 8, 2022, 03:07:00 PM