Lars Rohde, the governor of Denmark’s central bank, says he may be tempted to ignore cryptocurrency, adding that it is not currently a threat to the central bank. However, he pointed out that the real threat could come from large technology companies “invading the currency sector or implying transactions.”
The Governor of the Central Bank of Denmark inspired to ignore cryptocurrency
Lars Rohde, the governor of Denmark’s central bank, discussed cryptocurrency on Bloomberg from Copenhagen on Wednesday. He was asked whether the central bank sees the rise in cryptocurrency trading as a serious economic threat. The governor was specifically asked whether the central bank is taking the matter seriously or whether it continues to largely ignore cryptocurrency.
Governor Rohde replied:
I may be tempted to ignore it. I think the word Mudra has been used badly here. Most currencies are reserves of value or instruments of transaction.
“There is no stability and no guarantee from either side about the value of cryptocurrency, so it is a very speculative asset,” he said.
The governor was further asked if he felt that central banks would take action to try to reduce the rivalry from cryptocurrency in general. He confirmed: “Currently, no, I don’t think it’s an issue.”
Rohde went on to share whatever is more interesting. The Governor gave the opinion:
What’s more interesting is the large technology invading the currency sector or the means of transactions. This can be very interesting and perhaps a real threat to the autonomy and independence of central banks.
Rohde has been a bitcoin skeptic for a long time. In December 2017, he warned people to stay away from bitcoin, saying “it is fatal.”
He noted at the time that cryptocurrency “is not a regulated market,” stressing that “it is not the responsibility of the authorities. It is the responsibility of the individual.” Rohde then told investors not to come to us and complain if it is wrong. Furthermore, he said, “I see bitcoin as tulipmania, a bubble that is out of control.”
What do you think about the central banker’s comments on cryptocurrency? Let us know in the comments section below.
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