Cryptocurrency News

Big technology, not cryptocurrency, poses a real threat to the autonomy of central banks, says the Danish central bank governor

Crypto trading volumes continue to increase, but with many countries’ central banks willing to ignore it, Denmark is the latest to join the “crypto is negligible” narrative. The country’s central bank governor, Lars Rohde, does not see the rise of crypto trading as a serious economic threat.

“I might be tempted to ignore it,” she Told Bloomberg I think the word Mudra has been used badly here. Most currencies store value or are a means of transaction. There is no stability, no guarantee about the value of cryptocurrency. “

He said that crypto is a speculative asset.

When asked about central banks’ steps to reduce speculative rivalry from crypto, he admitted that he is more cautious about the moves of major tech companies in the payments sector. He said that the attack of big technology in the currency sector is more interesting.

“If the tech giants get hold of the means of the transaction, it could be a real threat to the autonomy and independence of the central banks.”

Denmark was one of the earliest countries to explore The possibility of a central bank digital currency, or CBDC. The Danish National Bank rejected the idea after a year-long study from 2016 to 2017 that the CBDC solution would do little to improve the country’s current financial infrastructure.

However, the central bank’s opinion has not had much impact on other banks in the country. For example this week, Saxo Bank of Denmark Announced That they are launching a new crypto FX product. This will enable users in the Middle East and North Africa or MENA region to trade major cryptocurrencies such as bitcoin.B T c), Ethereum (ETH), And Litcoin for fiat currencies from a margin account.

Other central banks around the world have raised different voices on cryptocurrency. Central Bank of Kuwait issued Warning on crypto usage Last week, while the Canadian central bank said it believes Bitcoin and other crypto-assets will be high risk “Because their intrinsic value is hard to establish.”

D Netherlands Bank NV, Dutch central bank, Neutral Approach on Crypto Trading A recent statement said, “Cryptocurrency does not represent anything. It is not part of anything. It is not a debt that is returned with interest.”