As El Salvador adopts Bitcoin (BTC) as authorized tender, one Dutch official blasted the cryptocurrency, calling for an pressing blanket ban.Pieter
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 beneath 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 listing of explanation why the Dutch authorities should implement a right away complete ban on mining, buying and selling and holding Bitcoin. Based on the official, this might trigger the worth to plummet as a result of Bitcoin “has no intrinsic worth and is simply worthwhile as a result of others could settle for it.”
The exec cited a standard anti-crypto narrative, arguing that any cryptocurrency is just not in a position to fulfill any of the three capabilities of cash as a unit of account, technique of cost and retailer of worth. He additionally cited different widespread anti-Bitcoin arguments like safety issues, dangers of fraud and scams, and argued that the crypto is great tool for prison actors.
Hasekamp stated that the Netherlands has been lagging behind nations which have moved to “curb the crypto hype” in recent times. “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 needed,” the official wrote.
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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 may work the other method 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 aren’t utilized in common cost transactions. […] Dangerous cash disappears from circulation as a result of no one desires to simply accept it anymore.“