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 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 an instantaneous complete ban on mining, buying and selling and holding Bitcoin. In line with the official, this might trigger the value to plummet as a result of Bitcoin “has no intrinsic worth and is simply worthwhile as a result of others might settle for it.”

The exec cited a standard anti-crypto narrative, arguing that any cryptocurrency just isn’t capable of fulfill any of the three features of cash as a unit of account, technique of fee and retailer of worth. He additionally cited different frequent anti-Bitcoin arguments like safety issues, 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 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.

Associated: Dutch regulators not sure of variety of crypto traders in Netherlands

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

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