September 27, 2023

Bank of Denmark Governor Calls Bitcoin a "Speculative Fad"

According to Lars Rohde, regulators can ignore cryptocurrencies, since there is no no guarantees and stability.

Governor of the National Bank of Denmark Lars Rode inAn interview with Bloomberg called Bitcoin a "speculative fad" that central banks in other countries can ignore. According to him, there is no stability and no guarantees regarding the value of cryptocurrencies.

Rohde believes that a more serious threat is coming fromnot from digital assets, but from large companies that are invading the financial sphere. This could threaten the independence of central banks, says the governor of the Danish regulator.

Earlier, cryptocurrencies were criticized by the head of the Bank of England, Andrew Bailey. He stated that digital assets have no intrinsic value and those who invest in them should be prepared to lose all their money.

Bailey also said that bitcoin cannot bea stable store of value or an effective instrument for making transactions. In his opinion, the main cryptocurrency is unsuitable for use as a payment instrument and is too risky for investors.