The biggest bank in Denmark, Danske Bank, has released a report criticising cryptocurrencies over perceived risks and lack of transparency.
In the document released on Sunday, the bank provided three primary reasons why it is overall "negative" towards cryptocurrencies, despite the growing attention they have received from among consumers and investors.
Since cryptocurrencies do not come with central bank backing, the report states, they lack protections for consumers and investors. Further, high volatility and a lack of pricing transparency provide "very limited insight" into market development and factors affecting prices. And, finally, a lack of regulatory oversight means cryptocurrencies are a target for criminals, it says.
Therefore, according to the bank, "we strongly recommend that our customers avoid investing in cryptocurrencies."
The report continues:
Danske Bank says it is also phasing out the option of buying financial instruments, such as derivatives or exchange traded notes (ETNs), that are linked to the price of cryptocurrencies. However, general customers will still be allowed to use their credit cards to purchase cryptocurrencies.
While against cryptos for the meanwhile, Danske Bank has been somewhat more keen on blockchain technology.
And in March 2017, it joined other banks and financial firms in completing the second phase of another blockchain proof-of-concept, also focused on syndicated loans.
Danske Bank image via Shutterstock
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