The director of Danish central bank has warned traders to stay away from bitcoin, evaluating the cryptocurrency to tulip mania within the 1600s. In an interview with nation broadcaster DR published this week, Danmarks NationalBank director, Lars Rohde warned traders and investors to steer clear of bitcoin, calling it an opportunity to casinos that is risky.
Lars Rohde stated:
“You need to stay away. It is risky. It’s an effective way to play. So if you do not like casinos, you’ve got a great opportunity.”
The comments aren’t new to central bankers around the world who’ve seen a decentralized cryptocurrency firmly set up itself as a currency and store of value amongst adopters and retail traders around the globe. However, Lars Rohde compared the modern marketplace frenzy around first cryptocurrency to economic bubbles of the past. Lars Rohde said:
“I see bitcoin like tulipmania, like a bubble out of control.”
Lars Rohde urged potential investors to stay faraway from a much unregulated bitcoin marketplace that was not the duty of governments. Rather, it is the responsibility of the person, the Danish central bank leader insisted, reminding traders not to come complaining to us if it is going incorrect.
Rohde’s feedback come in days of the Danmarks NationalBank publishing its outlook toward central bank cryptocurrencies. Calling it a danger to the Danish’s economic stability, the critical bank pointed to huge drawbacks to introducing central bank cryptocurrency in Denmark.
Stated within the central bank’s analysis:
“In a Danish context, it is doubtful what central bank cryptocurrency might be capable of make contributions that isn’t already covered by the modern way of payment.”