Dutch official requires full 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 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 reason why the Dutch authorities should implement an instantaneous whole ban on mining, buying and selling and holding Bitcoin. In keeping with the official, this might trigger the worth to plummet as a result of Bitcoin “has no intrinsic worth and is simply useful as a result of others could settle for it.”

The exec cited a typical anti-crypto narrative, arguing that any cryptocurrency is just not in a position to fulfill any of the three functions of money as a unit of account, technique of cost 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 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 obligatory,” the official wrote.

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

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

“Cryptocurrencies show all of the hallmarks of ‘dangerous cash’: unclear origin, unsure valuation, shady buying and selling practices […] Is Gresham’s legislation again? No, quite the opposite. Cryptocurrencies should not utilized in common cost transactions. […] Dangerous cash disappears from circulation as a result of no one desires to just accept it anymore.“