Denmark Bitcoin: Digitalizing National Currency
Today I want to talk about the Denmark Bitcoin position and regulation.
Denmark is a place where its citizens relie on cash less than most other European countries, so it is thinking about digitalizing its national currency.
To do so, the Danish central bank wants to release its own digital currency based on a blockchain and it will be called e-krone.
Governor of the Danish central bank, Lars Rohde. commented that the government doesn’t want to print its own fiat currency in the future.
So Rohde is looking for outsourcing the production of Danish krone and wants to replace it with its independent financial system based on the distributed ledger technology: the e-krone.
In an interview conducted by Bloomberg, Rohde explained that the Danish central bank effort is not related to the blockchain technology or alternative fintech technologies:
“We’re not preoccupied with the technology because we know that issue well. Cash and notes are not an alternative to electronic payments. We went beyond that many years ago.”
Also, the most important problem the central bank is worried about is the anonymity of the e-krone.
At the moment, the Danish bank believes that the e-krone will have a serial number embedded onto its Blockchain, so the government will be able to track the currency thanks to a transparent ledger.
However, another issue about the anonymity of a currency are the predictable complaints by the Danish citizens who expect to be provided with financial freedom and privacy.
“All money held by Danes will eventually end up in the central bank in the event of a financial crisis, and we will indirectly end up doing a bailout because we become a creditor to all the banks.”
But the distributed ledger tech is not applicable to the concept of the Danish central bank, as structurally it cannot be established for the central bank as network moderator.
To read more news about Denmark Bitcoin position, click here.
Open your free digital wallet here to store your cryptocurrencies in a safe place.