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Finance Ministers Speak Out on Economic Role of Crypto

Finance Ministers Speak Out on Economic Role of Crypto
  • Norway and Iran ministers spoke about the economic role of crypto.
  • Norway minister believes a ‘breakthrough’ will make crypto more stable.
  • Iran credits crypto with helping the country grow its revenue.

World governments are starting to acknowledge that cryptocurrency is more than a passing fad. Specifically, Norway and Iran finance ministers shared their perspectives regarding the role of cryptocurrencies.

Both the Norwegian and Iranian ministers acknowledged that cryptocurrencies have the potential to transform the financial landscape in the long term. However, the two differed on the role cryptos play in the short term.

Crypto ‘breakthrough’ imminent

On one hand, Norwegian finance minister, Jan Tore Sanner believes “cryptocurrencies will at some point move past the volatility for which they’re currently known.” Nonetheless, the top-ranking minister sees the value of crypto in the long term and not the present.

For now, the minister wouldn’t recommend the crypto market due to its high volatility. Sanner also mentioned crypto inefficiency as a mode of payment as another drawback. However, the minister went on to say,

“It is clear that there may be a development over time, whereby you will be able to get more stabilization mechanisms in the currencies that can lead to greater breakthroughs and upheavals in the slightly longer term.”

On the other hand, Sanner’s Iranian counterpart, Farhad Dejpasand, praised the role crypto is playing in his country’s economic growth. Dejpasand credited new technologies like blockchain and crypto mining with helping his country increase its revenue and weather sanctions.

Crypto is unstoppable

Notably, Iran claims that new technologies account for about a third of the country’s budget revenue growth. Specifically, the use of crypto has allowed the country to circumvent sanctions. The government even authorized local banks and exchanges to use locally mined crypto to pay for imports.  Further, Dejpasand predicts that blockchain will account for 10% of global gross domestic product (GDP) within four years.

However, Dejpasand also admits that crypto has its drawbacks. Mainly, Iran has been experiencing electricity shortages. The government has partly attributed these shortages to crypto mining which uses a high amount of electricity. In fact, authorities estimate that miners use up to 2,300 megawatts on a daily basis.

As a result, Iran has temporarily banned crypto mining, but the finance minister acknowledges that this is will not last saying “we cannot stand in the way of technology development.” On this one point at least both governments seem to be in agreement.

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Avid reader and writer with a passion for sharing crypto news and trends. Uses her background in finance to help readers better understand the crypto market and investments. Hopes to see mainstream crypto adoption in the near future, especially in Africa.