Sweden now controls a good share of Bitcoin mining market and many people already have a high-level of knowledge about cryptocurrencies and there is a high-level of digital competence in the Fintech space, says Claire Ingram Bogusz, a researcher at Stockholm School of Economics specialising in bitcoin and other cryptocurrencies.
Digital competence in the Fintech space
“We may not be the size of Hong Kong or London, but it’s hard to find that level of digital competence in other financial centres.”
The country has low-cost hydroelectric power and much renewable energy supply which favors mining but also the country is willing to embrace new technology, which encourages investments by other companies.
“The Hydro66 data center has access to huge amounts of green electrical power at a great price. This make it attractive for blockchain as it tends to require a lot of power,” says Anne Graf, CEO of HPC colocation center Hydro66 that has been in Boden since 2015.
Patrik Öhlund, CEO of Node Pole, owned by utility companies Vattenfall and Skellefteå kraf says the government has also been integral in encouraging global Bitcoin giants to Sweden.
Skyrocketing cryptocurrency results decline interest of Cash
Other factors leading to increased cryptocurrency investment include decline in interest of cash usage in the country. And the country’s central bank is thinking of introducing “e-krona” as a complement to cash. A decision about it is yet to be made.
According to the bank, electronic currency could lessen vulnerability of society in a payment market run exclusively by private actors.
“The e-krona is a real possibility. It will definitely happen sometime in the next five years,” confirms Bogusz.
The proposal mentions use of blockchain technology. The news of e-krona encouraged entry of a Miami-based blockchain and high-performance computing (HPC) company The Future of Mining to Sweden.
The north of Sweden is also a cold climate area with much renewable energy and vast natural resources. This makes it desirable for high performance computing such as Bitcoin mining.
Blockchain Technology adoption
Several cryptocurrency mining and blockchain companies have established data centers in Boden in the north of Sweden. In the south, a company called Plingpay acts as a bridge to facilitate usage of traditional currencies and Bitcoin.
Nils Lindh, Data Center Business Developer also says that blockchain technology is much more than just facilitating Bitcoin transactions and dealings. It can hold identities, value, and ownership.
“For instance. It could hold your vote in a general election, taking away any speculation that votes had been tampered with”. He says.
He says blockchain can disrupt supply chains in any kind of industry. Even companies could use it to order items and follow ordered items in the supply chain, at lower costs. Meanwhile, ensuring they get the right part at the right time
Although much of application of blockchain in Sweden is in the area of cryptocurrencies, the search does not end there: Sweden’s land registry authority The Swedish Mapping, Cadastre and Land Registration Authority is looking at how blockchain’s promise of “digital trust” could be applied to property transactions according to a report.
Their smart contracts allows buyers and sellers to use digital signatures to sign off on a property sale.