Bitcoin And Cryptos Are Just A Fad: Denmark's Central Bank Governor

Bitcoin And Cryptos Are Just A Fad: Denmark's Central Bank Governor

Lars Rohde — the governor of Denmark’s central bank Danmarks Nationalbank — last week said that Bitcoin (CRYPTO: BTC) and other cryptocurrencies are little more than a speculative fad that central bankers can probably ignore.

What Happened: While Rhode seemed largely unconcerned by cryptocurrencies,he was preoccupied with technology giants "invading the currency area," according to a Bloomberg report, saying it could pose "a real threat to the autonomy and independence of central banks.”

Rohde also warned that cash disappearing and digital payments taking off are upending the framework that monetary policy operated in so far.

Rhode said he is "tempted to ignore" Bitcoin since it's "a very speculative asset at best."

Why It's Important: The central banks of nations such as China and Sweden are already acting to keep control by working on the digital versions of their fiat currencies, which would allow these institutions to more easily carry on their activities in a cashless society.

While Denmark is not rushing to launch its digital currency, neighboring Sweden may have one up and running within the next five years. Yet, while the institution Rohde leads is using the technology and concepts underlying cryptocurrencies to develop its own digital currency, Sweden's Central Bank's First Deputy Governor Cecilia Skingsley said she has never seen “any crypto assets with an underlying real value.”

© 2021 Benzinga does not provide investment advice. All rights reserved.

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Cynthia Decker 3 weeks ago Member's comment

Well of course a central bank would say that, - their job security is at stake!