One of the most controversial topics in the cryptocurrency industry today is the ethics of central banks’ involvement in cryptocurrency. A few months ago, the Danish central bank chief Peder Larsen said that he sees no reason to prohibit central banks from creating their own digital currencies. “Central banks can create their own digital currencies, which would mean we could live in a cashless society,” he said.
The head of the Danish central bank, which is the country’s most important financial institution, has a rather traditional view of blockchain and cryptocurrency. In an interview with Danish newspaper Berlingske , the head of the Danish central bank, which is the country’s most important financial institution, said that decentralized cryptocurrencies are not “real” currencies at all and that it is “crazy” that many central banks are working on their own versions.
Cryptocurrency is one of the hottest topics in the world of finance right now, with many people questioning how scalable the technology is. However, one central banker is saying that the technology is a threat to the global financial system, since it might disrupt the way money is used. Jens Nordvig, the governor of Denmark’s central bank, said that while he has no problem with cryptocurrency, the fact that the technology is being used by big tech companies to disrupt the financial system means that it poses a great threat to the global economy.. Read more about is cryptocurrency legal and let us know what you think.Denmark’s central bank governor Lars Rohde says he may be inclined to ignore cryptocurrencies because they currently pose no threat to the central bank. However, he noted that the real threat could come from large technology companies getting into the currency or transaction instruments.
Danish central bank governor ignores cryptocurrencies
Denmark’s central bank governor Lars Rohde spoke about cryptocurrencies on Wednesday in a Bloomberg broadcast from Copenhagen. He was asked whether the central bank considers the rise of cryptocurrency trading a serious economic threat. The governor was specifically asked if the central bank is taking this issue seriously or if it will continue to ignore cryptocurrencies. Governor Rohde replied: I might be tempted to ignore it. I think the term currency is being misused here. Most currencies are stores of value or instruments of transaction. He added: There is no stability or guarantee regarding the value of cryptocurrencies, so it is a highly speculative investment at best. The governor was then asked if he thought central banks in general would take steps to try to reduce competition from cryptocurrencies. He confirmed: Not at the moment, I don’t think that’s a problem. Rohde moved on to what he found far more interesting. The governor has made his statement: More interesting is the penetration of Big Technology into the currency or transaction space. This could be very interesting and could also pose a real threat to the autonomy and independence of central banks. Rohde has long been a bitcoin skeptic. In December 2017, he advised people to stay away from bitcoin, stating: It’s deadly. He then noted that cryptocurrencies are not a regulated market and stressed that they are not the responsibility of the authorities. It’s a human responsibility. Rohde then told investors not to come and complain when something went wrong. He also said: I see bitcoin as a manic tulip, i.e. an out of control bubble. What do you think of the central banker’s comments on cryptocurrencies? Let us know your comments in the section below. Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.Last month, central bankers were shocked when their own country’s central bank chief said cryptocurrencies were a “significant risk” to the country’s economy. Not only did Lars Rohde, governor of Denmark’s central bank, say that cryptocurrencies posed a risk to the country’s economic stability, he said that the banking sector’s integration with these new forms of money could lead to banks being at a disadvantage to “big techs”.. Read more about why is cryptocurrency valuable and let us know what you think.
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