The Bank of Finland has been outspoken against cryptocurrencies for quite some time and has just published a 133 page document reviewing the matter. The document, titled “The Great Illusion of Digital Currencies”, was compiled by Aleksi Grym, the Finnish central bank’s head of digitalization, and states cryptocurrencies are a fallacy and illusion.
The review starts off stating:
The analysis shows that the concept of a digital currency is a fallacy.
Currency, in the form of coins and banknotes, can be viewed as a physical representation of
a monetary unit of account. Currency cannot be digitised, as this would inevitably mean creating
a financial record keeping system based on accounts. Cryptocurrencies are not currencies
at all but accounting systems for non-existent assets.
It goes on to discuss topics like what is money, liquidity, and currency, and the possibility for digital currencies existing. The paper also goes into an indepth analysis of Bitcoin and questions if Bitcoin has intrinsic value.
Aleksi Grym finishes the report stating his beliefs that even though adoption has increased, there is no indication that Bitcoin and other digital currencies will ever replace fiat currency and that crypto as a currency is fiction.
Grym has also been critical of crypto on his Twitter, one of his recent Tweets posts a link on the failure of ICOs.
Half of ICOs Die Within Four Months After Token Sales Finalized https://t.co/YWQhV7x0de
— Aleksi Grym (@aleksigrym) July 10, 2018
All though Finland does not have any regulations that would outright ban investing and trading cryptocurrencies, the main Finnish cryptocurreny exchange Prasos Oy has been having difficulty working with banks as 4 out of 5 banks used for business have shut down Prasos accounts with them. Finland has been at the forefront for education and technology but it is highly apparent they are no fans of cryptocurrency.
Read the complete document : The Great Illusion of Digital Currencies