Big tech is the real threat to central bank autonomy, not cryptocurrencies, says the governor of the Danish central bank

The volume of cryptocurrency trading continues to grow, but central banks in several countries want to ignore it. Denmark is the youngest to endorse the idea that “cryptocurrencies are insignificant”.

Lars Rohde, Governor of the country’s central bank, does not see the rise of cryptocurrency trading as a serious economic threat.TO

“I might be tempted to ignore it.”he told Bloomberg. “I think the term currency is being misused here. Most currencies store value or are a means of transaction. There is no stability or guarantee for the value of cryptocurrencies.”.

Big tech is the real threat to central bank autonomy, not cryptocurrencies, says the governor of the Danish central bank
Big tech is the real threat to central bank autonomy, not cryptocurrencies, says the governor of the Danish central bank

Crypto is a speculative asset at best, he added.

When asked about measures taken by central banks to reduce speculative rivalry over cryptocurrencies admitted that he pays more attention to the movements of big tech companies in payments. Your invasion of currencies is much more interesting, he said.

“If the big tech companies take over the media, it could pose a real threat to the autonomy and independence of central banks.”

Denmark was one of the first countries to examine the possibility of a central bank digital currency (CBDC).. Danmarks Nationalbank rejected the idea after a one-year study between 2016 and 2017. The decision that a CBDC solution would do little to improve the country’s current financial infrastructure.

However, the central bank’s views do not appear to have materially influenced other banks in the country. This week, for example Danish bank Saxo Bank has announced the launch of a new Crypto FX product. It allows 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 around the world have expressed different opinions about cryptocurrencies. The Kuwait Central Bank issued a warning about their use last week, while Canada’s central bank said it believed so Bitcoin and other crypto assets are at high risk “because their intrinsic value is difficult to determine”..

The Dutch central bank De Nederlandsche Bank NV has taken a neutral stance on trading cryptocurrencies in a recently published statement: “A cryptocurrency does not represent anything. It is not a part of anything. It is not a loan that is repaid with interest.”.

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