Dutch official requires full ban on Bitcoin

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Whereas El Salvador adopts Bitcoin 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 underneath the Ministry of Financial Affairs and Local weather Coverage, published an essay entitled “The Netherlands should ban bitcoin.”

According to the essay’s title, Hasekamp lists a large listing of the explanation why the Dutch authorities should implement a right away whole ban on mining, buying and selling and holding Bitcoin (BTC). In response to the official, this might trigger the worth to plummet as a result of Bitcoin “has no intrinsic worth and is simply precious as a result of others could settle for it.”

The manager cited a typical anti-crypto narrative, arguing that any cryptocurrency is unable to satisfy any of the three functions of money as a unit of account, technique of cost and retailer of worth. He additionally cited different widespread anti-Bitcoin arguments, equivalent to safety considerations, dangers of fraud and scams, and argued that the crypto is great tool for felony actors.

Hasekamp stated 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 crucial,” the official wrote.

Associated: Dutch regulators unsure of number of crypto investors in Netherlands

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

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