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Norwegian Finance Minister Jan Tore Sanner has suggested that bitcoin could surpass its current period of volatility and still experience breakthroughs.
It is clear that there may be an evolution over time, whereby you will be able to get more currency stabilization mechanisms that may lead to bigger breakthroughs and upheavals in a bit longer term, said Jan Tore. Sanner. Despite this assessment, he still believes cryptocurrency is not a market that I would recommend consumers to enter.
Bitcoin in Norway
Besides the warning, this more optimistic outlook puts Sanner at odds with Norway’s central bank governor Ystein Olsen. Previously, Olsen had said that bitcoin was too expensive, due to its energy intensive needs, and did not preserve stability the way a currency should. However, Sanners’ tempered perspective is more representative of the more nuanced range of voices in the Nordic country.
For example, bitcoin still has strong supporters, including the billionaire owner of one of the country’s largest business empires. Earlier this year, Kjell Inge Rokke, the majority shareholder of Aker ASA, announced the launch of the Bitcoin investment company called Seetee. Thanks to the company, Aker is now investing in projects across the Bitcoin ecosystem. Rokke is confident that the Bitcoin ecosystem will end on the right side of history, and recently hinted that the company would consider accepting payment in bitcoin.
Meanwhile, from Sanners’ more balanced perspective, he believes they can’t become mainstream until they are properly regulated. For its part, the Norwegian Ministry of Finance unveiled stricter registration requirements for cryptocurrency service providers earlier this week. This was done as part of new anti-money laundering measures, as Sanner also pointed out that cryptocurrencies are popular with criminals.
Norwegian CBDC
As the growing popularity of cryptocurrencies arouses apprehension, monetary authorities around the world are striving to issue their own digital currencies. Norway is no exception, recently announcing the next step towards a technical solution for its central bank digital currency (CBDC). This comes after four years of preliminary research, although there are still no specific plans to issue a CBDC.
As another Norges Bank official explained last year, this is because Norway is already a largely cashless society. If the country ultimately decides it is worth it, it will likely take several more years. As Norges Bank Deputy Governor Ida Wolden Bache said, the lack of urgency reflects our view so far that there is no urgent need to introduce a CBDC.
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