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Though the governor of Denmarks Nationalbank appears to be inclined to overlook cryptocurrency, other banks in the nation continue to develop new crypto-based services.
Crypto trade volumes continue to rise, but numerous nations’ central banks are determined to ignore them, with Denmark the most recent to join the “crypto is negligible” camp. The country’s central bank governor, Lars Rohde, does not see the emergence of cryptocurrency trading as a severe economic danger.
“I could be tempted to ignore it,” he told Bloomberg. “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.”
Crypto is a speculative asset at best, he added.
When questioned about central banks’ efforts to prevent speculative rivalry from crypto, he confessed that he is more concerned about large internet firms’ actions in the payments area. Big tech’s assault of the monetary space, he believes, is far more intriguing.
“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.”
Denmark was one of the earliest countries to explore the possibility of a central bank digital currency, or CBDC. The Danmarks Nationalbank discarded the idea following a one-year study from 2016 to 2017, deciding that a CBDC solution would do little to improve the current financial infrastructure of the country.
The central bank’s opinions don’t seem to have had much of an affect on other banks in the country, however. This week for instance, Denmark’s Saxo Bank announced that they are launching a new crypto FX product. This will enable users from the Middle East and North Africa, or the MENA region, to trade major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Litecoin for fiat currencies from a single margin account.
Other central banks throughout the globe have expressed varying opinions on cryptocurrency. Last week, Kuwait’s Central Bank issued a warning on crypto use, while Canada’s central bank stated that Bitcoin and other crypto-assets are high risk “because their intrinsic value is difficult to establish.”
The Dutch central bank, De Nederlandsche Bank NV, adopted a neutral position on crypto trading in a recent statement, noting, “A crypto does not represent anything.” It isn’t a stake in anything. It is not a debt that must be repaid with interest.”