Sweden is set to have to raise the equivalent of $1.2 billion in cash to pay its bailout to the Swedish banking system on Friday, and it’s not the first time the country has had to use cryptocurrency to fund the process.
Sweden’s central bank announced that it would pay the first instalment of its bailout payment in the form of bitcoin, with the other €1.5 billion in fiat money set to be sent through a credit card.
Bitcoin has seen a steady rise in popularity as it’s been able to bypass the usual banking system, making it an attractive option for countries around the world.
The Swedish bank also said that the government would receive €500 million in cash from the central bank, and the total amount of cash it has received so far is almost three times the amount it needed to pay.
The Swedish government will be able to receive €50 million in bitcoins, but it’s likely that this will be less than half of what it needs to pay the entire bailout, as the bank will only be able receive €1 million.
Switzerland, the Netherlands and Luxembourg have all been using bitcoin to pay for their bailouts, but bitcoin has been widely criticised for being a volatile and volatile commodity.
The Swiss central bank has said that it is not responsible for the volatility of bitcoin prices and that it has no control over how it is used.
Swiss banks have also been using the cryptocurrency to pay out more than €1 billion to their customers in the past few weeks.
Bitcoin is currently worth around $1,739, but the currency has gained popularity in the wake of the Brexit vote.
The UK’s Prime Minister has also spoken out against the currency and its use for Brexit payments.
The government of Sweden has not said when it plans to pay off its bailout, but its official Twitter account has previously posted that it will be sending the final instalments to its local central bank via the Credit Card Authority (SIB), which handles payments for foreign banks.
Swedish Prime Minister Stefan Lofven has previously called bitcoin a ‘great and wonderful innovation’ that is an ‘important tool’ for developing the country.
Swish banks have already received around €1bn in bitcoin payments from the country’s central banks, and they have been known to send a similar amount via the Swedish Credit Union, which has also received money from the Swedish central bank.