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Danish national bank disses bitcoin

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April 2nd, 2014


This article is more than 10 years old.

“Not money” says statement

Danmarks Nationalbank, the nation’s central bank, has released a briefing note comparing the popular bitcoin virtual currency to “glass beads”.

The statement points out the bitcoin is not money as there is no issuer that stands behind the currency, and that its more akin to a commodity, to which users attach value.

Denmark’s national bank joins other banks around the world in warning users to be wary of the virtual currency.

Banned in some countries
In January, Malaysia’s central bank warned citizens that “the bitcoin is not recognised as legal tender in Malaysia”, and In December last year, the People’s Bank of China banned financial institutions in the country from trading in bitcoin.

 “Bitcoin is a virtual currency without any value anchor and hence it may rise sharply or fall very suddenly,” said Hugo Frey Jensen, the governor of the Danish national bank in the statement. “A core property of money is that its value is stable so that its purchasing power does not change markedly from day to day.”

READ MORE: Calls for cyber strategy

Jensen said that the use of bitcoin as a means of payment remains “very limited”.

The European Banking Authority has also issued warnings about digital currencies, and some have suggested that the authority is looking into the possibility of regulating bitcoin.

 


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Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

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At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

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Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”