The director of Denmark’s central bank has warned investors to “stay away” from bitcoin, comparing the cryptocurrency to “tulipmania” in the 1600s.
In an interview with state broadcaster DR published this week, Danmarks NationalBank director Lars Rohde warned investors to steer clear of bitcoin, calling it an alternative to casinos that is “dangerous”.
In translated remarks, Rohde said:
“You have to stay away. It is dangerous. It’s an effective way to play. So if you do not like casinos, you’ve got a good alternative.”
The remarks are not new to central bankers around the world who have seen a decentralized cryptocurrency firmly establish itself as a currency and store of value among adopters and retail investors around the world.
The central bank director compared the current market frenzy around the world’s first cryptocurrency to financial bubbles of the past, stating:
“I see bitcoin like tulipmania, like a bubble out of control.”
Rohde urged potential investors to stay away from a “completely unregulated [bitcoin] market” that was “not the responsibility of authorities”. Instead, “it is the responsibility of the individual,” the central bank chief insisted, reminding investors not to “come complaining to us if it goes wrong”.
Rohde’s remarks come within days of the Danish central bank publishing its outlook toward central bank digital currencies. Calling it a threat to the country’s financial stability, the central bank pointed to “considerable drawbacks to introducing central bank digital currency in Denmark.”
“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,” read an excerpt from the central bank’s analysis.
Danish central bank image from Wikimedia.