Norway’s Finance Minister Jan Tore Sanner suggested that Bitcoin could overcome its current volatility and still see “breakthroughs”.
“It is clear that over time there may be a development where you can get more stabilization mechanisms in the currencies that can lead to more” Breakthroughs and upheavals somewhat longer term, ”said Jan Tore Sanner. Despite this assessment, he still believes that cryptocurrencies are “not a market that I would recommend to consumers.”
Bitcoin in Norway
Warning aside, this rosy prospect brings Sanner into conflict with the Governor of the Norwegian Central Bank, Øystein Olsen. Earlier, Olsen had said that Bitcoin too expensive, due to its energy-intensive needs, and did not maintain stability as a currency should. Sanner’s balanced perspective, however, is more representative of the more nuanced vocal diversity of the Nordic country.
Bitcoin, for example, still has hearty backers, including the billionaire owner of one of the country’s largest corporate empires. Earlier this year, Aker ASA’s majority shareholder, Kjell Inge Rokke, announced the launch of the Bitcoin investment company Called sea tea. Through the company, Aker is now investing in projects across the Bitcoin ecosystem. Confident that the Bitcoin ecosystem will end up “on the right side of history”, Rokke recently indicated that the company would consider paying in Bitcoin.
Meanwhile, from Sanner’s more balanced standpoint, he believes that they cannot become mainstream until properly regulated. For its part, the Norwegian Ministry of Finance announced stricter registration requirements for cryptocurrency service providers earlier this week. This happened as part of new measures to combat money laundering, as Sanner also emphasized that cryptocurrencies are “popular with criminals”.
With the increasing popularity of cryptocurrencies causing concern, monetary authorities around the world are working to issue their own digital currencies. Norway has been no exception lately announcement the next step towards a technical solution for its central bank digital currency (CBDC). This is happening after four years of preliminary research, although there are still no concrete plans to issue a CBDC.
As another Norges Bank official explained last year, that’s because Norway is already a largely cashless society. When the country finally decides it’s worth it, it would likely be several more years. As Norges Bank Deputy Governor Ida Wolden Bache said: “The lack of urgency reflects our previous view that there is no urgent need to introduce a CBDC.”