The considerable growth of the cryptocurrency sector in the past year has actually stood out of central lenders. The latest to suggest on the matter and, somewhat expectedly, to dismiss the market’s opportunities of in fact disrupting the centuries-old financial space was the governor of Denmark’s reserve bank.
Crypto Is Speculative Fad
During a current interview with Bloomberg, Lars Rohde, the governor of Danmarks Nationalbank, took a couple of stabs at the cryptocurrency sector. Despite their current growth and the overall market capitalization’s 10x boost in a year, the main lender still remains doubtful by calling the market “speculative trend.”
Similar to most of his colleagues, Rohde laid out the infamous volatility and lack of a central authority as the primary reason for his termination. Consequently, he kept in mind that he is “tempted to overlook” BTC and the rest of the marketplace.
“It’s an extremely speculative property at best. There is no stability and no warranty from any side about the value of cryptocurrencies.”
While deriding crypto’s possibilities of interrupting the financial space, the central lender highlighted a difficulty originating from fintech business. If large tech firms, such as Facebook’s Diem effort, choose to invade the “currency area,” it could be “really fascinating and possibly likewise a genuine hazard to the autonomy and self-reliance of reserve banks.”