Ida Walden Buch: “cryptocurrency projects cannot replace banks”

Deputy Governor of the Bank of Norway Ida Walden Bach noted the growing interest in digital assets in the country, but stressed that cryptocurrency projects cannot replace banks.

Norway is the country with the least use of cash – the volume of transactions in foreign currency is around 5%. Therefore, the interest of Norwegian residents in digital currencies is not surprising, and accordingly, the country’s Central Bank is considering the possibility of issuing a state cryptocurrency.

However, the official believes that such assets are unlikely to pose a threat to banks and the Norwegian krone:

“I think it’s unlikely that cryptocurrencies can make banks and the Norwegian krone unnecessary. Although, of course, the financial system will change. ”

Walden Buch noted that even in the case of significant popularity of cryptocurrencies, the state will not abandon the use of the crown. National currency and digital assets may well coexist:

“We can imagine an intermediate solution, when the state will use the kroon for its own needs, and private companies will prefer one or more cryptocurrencies. In this case, infrastructure development is needed to support all these opportunities. ”

One of the reasons for supporting the kroon was the difficulty of accepting tax and other payments in other currencies. In addition, the crown is a measure of value, and if it is abandoned, it will be more difficult to evaluate goods and services.

In March, Norway Bank Governor Oystein Olsen said bitcoin is now too expensive to be an alternative to cash. He called it an unstable and resource-consuming asset.