Danske Bank will not block crypto

Danske Bank has disclosed their official stance on DeFi: scepticism remains, but the importance of the innovation is acknowledged

The Danske Bank has made its position on crypto clear, and it is relatively positive. It will support crypto credit card transactions, and accept deposits related to blockchain. The statement further holds:

Cryptocurrencies represent a significant digital innovation in financial services.

This puts Denmark in line with a list of countries embracing DeFi, while Europe as whole has retained a rather mediocre progression into the tech. Currently Sweden is leading CBDC innovation in the EU with their e-Krona, while the EU itself is lagging behind in FinTech.

Still, the Danish bankers are sceptical due to well-known concerns. Danske Bank fears DeFi to facilitate financial crime and money laundering, as crypto is “not sufficiently transparent.”

Towards clients they addressed the concerns of insufficient regulatory framework causing a lower level of consumer protection, and with their ambitions of sustainable banking in mind, they have also criticised the environmental impact of blockchain based money.

In trying to understand the mixed messages of the statement, the final words give more clarity. Danske Bank will cooperate with the EU institutions to develop clearer regulations, and it seems, that progress in such an international framework would improve the institution’s positivity on the subject, posing good reasons for investors to be optimistic for European DeFi.

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