Danish central bank’s governor, Lars Rohde joins the list of officials who have dissed crypto for lacking stability.
The crypto-verse grew from nothing to a $2 trillion industry. Bitcoin [BTC] recorded a notable evolution which urged several to suggest that BTC was the internet’s currency. The popularity of the currency grew just like its price which further led to speculations of BTC overthrowing the dollar or even shaking up the autonomy of centralized institutions like banks. However, the Danish central bank, Danmarks Nationalbank’s governor suggested otherwise.
Appearing in a recent interview with Bloomberg, Rohde noted that cryptocurrencies were nothing but speculative assets.
Danish central bank governor comments on crypto
2021 started off great for the crypto industry as almost every currency bagged significant gains. This further led to the rise in the trading volume of cryptocurrencies. Several countries were quick enough to address it by rolling out revised regulations, the Danish central bank does not seem to find this necessary. Rohde in the interview elaborated on his stance about the crypto-verse and said,
“I could be tempted to ignore it. I think the term currency is badly used here. Most currencies store value or are means of transactions. There is no stability, no guarantee about the value of cryptocurrencies.”
This, however, did not stop banks in Denmark from carrying out crypto-related activities. A prominent Danish bank, Saxo even went on to reveal the launch of a crypto FX product.
While crypto did not have any major impact on the central banks, Rohde pointed out what really posed a threat to these banks. He stated,
“If tech giants get a hold on the means of transaction, then that could be a real threat to the autonomy and independence of central banks.”
Rohde’s concern seemed legit as tech giants were currently sitting under the spotlight. With digitalization booming in full par, tech giants have been progressing impeccably.