The Riksbank Governor says that regulation is coming to crypto.
Riksbank Governor Expects Crypto Regulation
The governor of Sweden’s central bank thinks that crypto will be regulated.
Speaking to Bloomberg, Stefan Ingves remarked that the recent growth of the space has increased the likelihood of regulation. He said:
“When something gets big enough, things like consumer interests and money laundering come into play. So there’s good reason to believe that [regulation] will happen.”
Ingves is one of the most senior officials at Sveriges Riksbank. He’s one of the key figures that would oversee Sweden’s regulation of cryptocurrencies, as well as the potential release of a central bank digital currency (CBDC).
Sweden is ahead of most of the world on the path to going cashless, with Ingves recently estimating that it could release its own CBDC in the next five years.
Ingves’ latest comments come as central bankers around the world have begun to acknowledge the rapid expansion of the cryptocurrency space. On Monday, it was revealed that one of the top officials at Ireland’s central bank had said that cryptocurrencies were a point “of great concern.”
That’s a sentiment shared by many other central bank officials. Governors at the Bank of England and Bank of Japan have also taken shots at the space in recent weeks, highlighting that digital assets are extremely volatile and have no intrinsic value.
Crypto Growth Attracts Attention
The rising prices of cryptocurrencies like Bitcoin and Ethereum have doubtless brought more attention from regulators in recent months. Both assets have hit record highs in recent weeks; they’re up 285% and 1,025% in the last year despite a big correction last month.
It’s not only Sweden that’s starting to take notice of crypto cementing its place in the mainstream. The Financial Times has reported that Michael Hsu, who took on the role of Acting Comptroller of the Currency May 10, is looking at setting up a “regulatory perimeter” for cryptocurrencies. He said:
“It really comes down to coordinating across the agencies. Just in talking to some of my peers, there is interest in coordinating a lot more of these things.”
Meanwhile, Jerome Powell recently suggested that the Federal Reserve would be looking into the potential release of a central bank digital currency. The Fed Chair recently announced the release of a paper discussing the technological developments in the global payments landscape, including cryptocurrencies. Any potential digital dollar would require consultation from the public and be “a complement to, and not a replacement of, cash,” he said.
Disclosure: At the time of writing, the author of this feature owned ETH, ETH2X-FLI, and several other cryptocurrencies.