Erik Thedéen, head of the Swedish Financial Supervisory Authority (FI), says that one of the reasons why FI continues to advise against investing in cryptocurrencies is that they are seldom suitable as a means of payment.
According to Thedéen, it is almost impossible for consumers, for example, to correctly value cryptocurrencies.
The FI manager therefore believes that the purchase of cryptocurrencies should not be seen as an investment, but as a speculative purchase.
- Everyone who engages in speculation must be aware of the financial dangers, that the entire effort in the worst case can be lost.
FI: "Can be used by criminals"
Thedéen also pointed out that the design of cryptocurrencies can benefit criminals.
It can be difficult, if not impossible, to identify who carries out transactions and there is no central counterparty responsible for overseeing.
- Nobody knows where the money comes from either.
I think one has to ask oneself whether one really wants to invest in or encourage the growth of assets that can be widely used by criminals.
The cryptocurrency bitcoin can be accessed anywhere, is easy to store unlike cash and can be used for fast and relatively anonymous transfers between countries.
According to Thedéen, all this can make it easier for criminals.
Requires a lot of electricity
The idea supports a proposal that the European Commission has developed for regulation.
According to the FI manager, it will provide consumer protection that is designed so that it becomes stricter for the most risky types of crypto assets.
The FI manager emphasizes that the use of cryptocurrencies requires "an enormous amount of electricity" and that electricity use increases in line with market valuation.
Finansinspektionen collaborates with the Swedish Environmental Protection Agency to review the environmental impact.
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Photo: SVT / TT / EPA