The Danish Central Bank Fears Tech Company Expansion More Than Cryptocurrencies

The governor of the central bank of Denmark, Lars Rohde (Wall Street Journal)

JAKARTA - The rise of cryptocurrency transactions in various parts of the world has worried a number of central banks. However, the Danish central bank is not worried about the development of cryptocurrency. They even worry about technology companies that control the transaction tools.

The governor of the Danish central bank, Lars Rohde considered that the increase in the volume of cryptocurrency transactions was not a serious threat to the country's economy. Rohde doesn't really care about the cryptocurrency phenomenon.

"I can be tempted to ignore it", said Rohde as quoted by Cointelegraph, May 28.

“I think the term currency is used poorly here. Most currencies store value or means of transaction. There is no stability, no guarantees about the value of cryptocurrency", he added.

Rohde also stated that cryptocurrency is the best speculative asset at the moment.

"Crypto is the best speculative asset", he said.

When Rohde was asked about the central bank's efforts to tackle crypto money, the Danish central bank governor admitted that he was warier of tech giants trying to get into the payment sector.

He added that the massive technological invasion of the realm of currencies is more cause for concern than cryptocurrencies. The central bank will be threatened with technology giants controlling the means of transactions.

"If the technology giants master the transaction tools, it could pose a real threat to the central bank's autonomy and independence", said Rohde.

Denmark is one of the first countries to study central bank digital money or CBDCs. They conducted research from 2016 to 2017. Then Danmarks Nationalbank dropped the idea. They argue that CBDC will not have much effect in improving the country's financial infrastructure.