In Sweden, the Staffanstorp authorities wish to diversify the municipality’s investment portfolio by adding cryptoassets.
Staffanstorp explores the crypto space
The Swedish municipality of Staffanstorp has decided to carry out research on cryptocurrencies. All politicians have agreed to do so by April 20, 2022. The municipality has a robust economy and an investment portfolio containing over 500 million Swedish kronor (around 49 million euros).
The investments made by the municipality consist of fixed income securities and transferable securities. Now, local authorities are banking on crypto investments as a possible means of diversifying risk.
Christian Sonnesson, president of the city council, believes that the issue is not to own bitcoin (BTC). ” We think we will receive offers on this in the future and now we want to inquire to be better informed. “
Investments will be made through crypto funds that monitor the value of cryptocurrencies.
Sonnesson believes that you should not be afraid
Opposition leader Pierre Sjostrom accepted Sonnesson’s initiative, but expressed concern over the risky nature of digital currencies.
While the research results are positive, it is not clear whether the local government law will allow the use of cryptocurrencies. It states that “municipalities and communes must manage their funds to ensure high returns and satisfactory security “.
Nonetheless, Sonnesson believes fear of the unknown is preventing investors from engaging in the cryptocurrency industry. He would like Staffanstorp to be the first municipality in the country to invest in digital currencies.
Annika Wallenstom, chief economist of Swedish municipalities and communes, endorses Sonnesson’s initiative. “If you don’t want to take any risk you might not profit from it, so it’s always a question of valuation.“, she says.
Sweden prepares for the digital crown
The governor of the kingdom’s central bank, Stefan Ingves, compared thetradingbitcoin to stamp trading before launching that money not issued by a central bank would fail.
The Swedes are gradually abandoning cash. In 2020, the Royal Swedish Bank has begun to test the e-crown which will give access to a currency issued by the State, albeit in a digital form. This year, the bank will continue its tests, test the technical application of the e-crown and compare different technological solutions for the currency.
The race to adopt digital currencies continues. Central banks in many countries are working on developing their own CBDCs. Peru became one of the last countries to join this race. In November 2021, the president of the Central Reserve Bank of Peru (BCRP), Julio Velarde, announced that the institution was preparing its digital currency.
Receive a summary of the news in the world of cryptocurrencies by subscribing to our new service of newsletter daily and weekly so you don’t miss out on Cointribune essentials!
Passionate about new technologies and computers, blockchain and crypto are a field in which I have totally blossomed. I am convinced that they are a crucial part of our future!