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.
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.
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.
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.
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.
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.