Danish central bank governor Lars Rohde says he might be tempted to ignore the cryptocurrency as it is not currently a threat to the central bank. He pointed out, however, that the real threat could come from large tech companies “intruding into the currency area or the means of transaction”.
Denmark’s central bank governor tries to ignore cryptocurrency
The Danish central bank governor Lars Rohde spoke about cryptocurrencies on Bloomberg from Copenhagen on Wednesday. He was asked if the central bank views the surge in cryptocurrency trading as a serious economic threat. Specifically, the governor was asked whether the central bank was taking the matter seriously or whether it continued to largely ignore the cryptocurrency.
Governor Rohde replied:
I might be tempted to ignore it. I think the term currency is used poorly here. Most currencies are a store of value or a means of transaction.
He added, “There is no stability and no guarantee of the value of cryptocurrencies, so it’s a very speculative asset at best.”
The governor was also asked if he thinks central banks will generally take action to try to reduce rivalry over cryptocurrencies. He reiterated: “Currently, no, I don’t think that’s an issue.”
Rohde went on to share what he thinks is much more interesting. The governor said:
What is more interesting is that big tech is invading the currency area or the means of transaction. That could be very, very interesting, and maybe a real threat to the autonomy and independence of central banks.
Rohde has long been a Bitcoin skeptic. In December 2017, he warned people to stay away from Bitcoin, stating, “It’s deadly”.
He stated at the time that cryptocurrency “is not a regulated market” and emphasized: “It is not the responsibility of the authorities. It is the responsibility of the individual. ”Rohde then urged investors“ not to come and complain to us if it goes wrong ”. He also said, “I see Bitcoin as tulip mania, a bubble that is getting out of hand.”
What do you think of the central banker’s comments on cryptocurrency? Let us know in the comments below.
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