Danish Central Bank Bitcoin Warning: Stay Away from Bitcoin

Amid global worries about potential Bitcoin bubble, many governments issue various warnings for the public, aiming to caution investors about the riskiness of Bitcoin investment. One of the latest comes the Danish Central Bank Bitcoin Warning. What did the chief of Danmarks Nationalbank have to say?

19 December, AtoZForex The Chief of the Danish central bank, Lars Rohde, has shared his opinion in regards to the cryptocurrencies with the public. As a matter of fact, Mr. Rohde has warned investors to “stay away” from Bitcoin.

Danish Central Bank Bitcoin Warning: Stay Away from Bitcoin

The Director of Danmarks Nationalbank Lars Rohde appears to be the opponent of Bitcoin and cryptocurrencies as a whole. He believes that Bitcoin is “dangerous”. In addition, Mr. Rohde believes that Bitcoin investment resembles gambling. He has added:

“If you do not like casinos, you’ve got a good alternative. I see bitcoin like tulip mania, like a bubble out of control.”

Mr. Rohde also stated that Bitcoin market is “completely unregulated”, adding that there is no protection for investors provided by the authorities.

“It is the responsibility of the individual and investors should not come complaining to us if it goes wrong,” he added.

Danish Central Bank Bitcoin Analysis

The remarks of Danish Central Bank’s head appear just some days after the analysis published earlier last week by the team with the bank.

The analysis has highlighted that introduction of a central bank-issued currency in the country is not a feasible solution. The reason being is the probable ineffectiveness of the currency in terms of the payment solutions. Moreover, this also might bring some risks for the financial stability of Denmark.

The Danish Central Bank analysis note states:

“In a Danish context, it is unclear what central bank digital currency would be able to contribute that is not already covered by the current payment solutions.”

Earlier in 2014, the central bank of Denmark has drawn a comparison between Bitcoin and “glass beads.” The authority was referring to the beads that were traded in last centuries for ivory, gold, and other commodities.

The Danmarks Nationalbank states that Bitcoin is not money in the true sense of the word, while it is also not supported by any institution.

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