The digitalization advisor at the Bank of Finland, Aleksi Grym, declared in a paper published that “the concept of a digital currency is a fallacy.” on behalf of the bank. While sharing his thoughts and ideas, he has argued with them that cryptocurrency are not real forms of money and are “not currency at all but rather accounting systems for non-existent assets.”
The advisor at the Bank Aleksi Grym has also questioned the confusing choice of terminology, which is featured and authored by Satoshi Nakamoto, in the original white paper bitcoin pseudonymous creator. Grym to make his points clearer for the people has drawn parallels between how a traditional bank works and how bitcoin functions. First, with bitcoin, the accountants in a traditional bank are similar to the miners. Second, the centralized ledger held by banks to record account balances and transactions are similar to the bitcoin blockchain. “The main difference between a cryptocurrency system and a traditional bank system is that in a cryptocurrency system the ledger is distributed across a network of computers, while a traditional bank maintains the ledger in a centralised computer system,” he also states on this adding that there is no practical difference in what the systems are doing.
Aleksi Grym compares accountants in a traditional bank as miners, while a bank’s centralised ledger is like bitcoin blockchain.
He also said to make his point clearer for the people “Money, at its essence, is a unit of account,” he adds concluding that cryptocurrencies cannot replace the current forms of money and will never be the only money form as well. According to Grym, cryptocurrency at best can act as an effective way of financial record-keeping. Even back in the year 2014, the Bank of Finland classified bitcoin as a commodity type and not a currency.