Dutch official calls for complete ban on Bitcoin

Dutch official calls for complete ban on Bitcoin

As El Salvador adopts Bitcoin (BTC) as authorized tender, one Dutch official blasted the cryptocurrency, calling for an pressing blanket ban.

Pieter Hasekamp, director of the Dutch Bureau for Financial Evaluation below the Ministry of Financial Affairs and Local weather Coverage, printed an essay entitled “The Netherlands should ban bitcoin.”

In step with the essay’s title, Hasekamp lists a large checklist of the reason why the Dutch authorities should implement a direct whole ban on mining, buying and selling and holding Bitcoin. In keeping with the official, this might trigger the value to plummet as a result of Bitcoin “has no intrinsic worth and is simply precious as a result of others might settle for it.”

The exec cited a typical anti-crypto narrative, arguing that any cryptocurrency will not be capable of fulfill any of the three features of cash as a unit of account, technique of cost and retailer of worth. He additionally cited different widespread anti-Bitcoin arguments like safety considerations, dangers of fraud and scams, and argued that the crypto is useful gizmo for legal actors.

Hasekamp mentioned that the Netherlands has been lagging behind international locations which have moved to “curb the crypto hype” lately. “Dutch regulators tried to tighten up the supervision of buying and selling platforms, however with out a lot success. The Central Planning Bureau identified the dangers of crypto buying and selling in 2018, however concluded that stricter regulation was not but essential,” the official wrote.

Associated: Dutch regulators uncertain of variety of crypto traders in Netherlands

In his essay, Hasekamp paid particular consideration to Gresham’s legislation, a  financial precept that states that overvalued forex, or “unhealthy cash,” tends to drive legally undervalued forex, or “good cash,” out of circulation. Calling Bitcoin “unhealthy cash,” Hasekamp argued that Gresham’s legislation might work the alternative manner with Bitcoin:

“Cryptocurrencies reveal all of the hallmarks of ‘unhealthy cash’: unclear origin, unsure valuation, shady buying and selling practices […] Is Gresham’s legislation again? No, quite the opposite. Cryptocurrencies will not be utilized in common cost transactions. […] Dangerous cash disappears from circulation as a result of no person needs to simply accept it anymore.“