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Denmark’s National bank governor seems tempted to ignore cryptocurrencies

Denmark's National bank governor seems tempted to ignore cryptocurrencies

The Crypto trading volumes are continuing to increase. However, several country’s Central banks are keen to ignore it. Moreover, Denmark is the latest to join the “Crypto is negligible” narrative.


Governor


Lars Rohde, the country’s Central bank governor, doesn’t see the rise of Crypto trading as a serious threat to the economy. However, he told Bloomberg that he could get tempted to ignore it. He also thinks that the term currency is not appropriate here.


Store of Value

In addition, he said that most currencies store value or are the means of transaction. Therefore, according to him, there is no stability or guaranty about the importance of cryptocurrencies. He also added that Crypto is a speculative asset at best.


Central Bank’s Move

He was asked about the central bank’s move to reduce the speculative rivalry from Crypto. He admitted that he is more watchful of significant tech company moves in the payment field. However, he also opined that the Big Tech’s invasion of the currency area is much more enjoyable.


Real Threat

He also said that if tech giants could get holding of the means of transactions, that could be a real threat to the autonomy and independence of Central Banks. Denmark was one of the earliest countries that explored the possibilities of the Central Bank’s digital currency.


Discarded

The National Bank of Denmark discarded the idea following a one-year study from 2016 to 2017. Moreover, it decided that a CBDC solution would do little to the current financial infrastructure in the country.


No effect

Other banks seem to have little to no effect on the Central bank’s opinion. However, Denmark’s Saxo Bank announced this week that they are launching a new Crypto FX product.


MENA

This will allow users from the Middle East and North Africa or the MENA region to trade on major cryptocurrencies like Bitcoin Ethereum and Litecoin for Fiat currencies from a single margin account.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.