Norway is now planning to withdraw NOK 121 bln (close to $15 bln) from its sovereign wealth fund in order to cover its loss of oil revenue. The idea that Norway’s sovereign wealth fund could put cryptocurrency in its portfolio now sounds wild, but in reality it could happen soon.
The country is the biggest oil exporter in western Europe and with crude oil prices down, it has hurt the Norwegian economy and if oil prices do not rise. The fund itself is approximately $890 bln.
The fund keeps the money in the Norges Bank. By third quarter 2016, the government already withdrew a total of NOK 54 bln. It looks like the trends is continuing despite negative effects.
Norway and Bitcoin
Norway itself is welcoming Blockchain technology as well as Bitcoin, deeming it a taxable asset but not a currency. Its largest bank, DNB has proposed to stop the use of cash in Norway and Scandinavian bank, Nordea is running its Nordic Blockchain accelerator.
As Bitcoin’s volatility is still high, most countries are still hesitant but still willing to accept Bitcoin. The Norwegian government so far has not shown interest in Bitcoin. However, with Scandinavian banks siding with Blockchain, it will not be long before Norway follows.
In recent years, the tension between Bitcoin and Scandinavian countries has eased. In 2014 , several banks closed down bank accounts of companies working in the Bitcoin space including Bitcoinbolag.
Several hedge funds are already invested in Bitcoin due to its fluctuating price which could lead to high returns and growth rates. Perhaps Norway’s sovereign wealth fund could put cryptocurrency in its portfolio.