Dutch official predicts a crash in the crypto market and says the Netherlands must now ban Bitcoin – regulation Bitcoin News
The director of the Dutch Bureau of Economic Policy Analysis, part of the country’s Ministry of Economy and Climate Policy, has predicted “the ultimate collapse of the crypto bubble”. He calls on the government to immediately ban Bitcoin and other cryptocurrencies. However, the country’s finance minister disagrees that a cryptocurrency ban is right for the country.
CPB director wants to ban cryptocurrencies
Pieter Hasekamp, Director of the CPB Netherlands Bureau for Economic Policy Analysis (CPB), published an article on the CPB official website on Friday entitled “The Netherlands Must Ban Bitcoin”. The article was originally written for publication in the daily newspaper Het Financieele Dagblad.
The CPB is part of the Ministry of Economic Affairs and Climate Policy. Its director is appointed by the minister in consultation with other members of the government. However, the CPB is completely independent in terms of content, according to the office’s website. As the central planning office of the state, the CPB conducts scientific research with the aim of making a contribution to the economic decision-making process of politicians and decision-makers.
Hasekamp has been director of the CPB since March 1, 2020. Previously, he was Director General of Taxation in the Ministry of Finance and Director of Health Insurance in the Ministry of Health, Welfare and Sport.
After examining the use of cryptocurrencies as money, he concluded:
Cryptocurrencies are unsuitable as a unit of account and as a means of payment outside the criminal sphere; its use as a store of value is based on the hope that one day cryptocurrencies will replace real money. But that won’t happen.
The director continued, “Cryptocurrencies are essentially neither money nor a financial product, but an example of what Nobel Prize winner Robert Shiller calls an infectious narrative: an infectious story that people believe in because others believe in it. The law of Gresham is replaced by the law of Newton: What goes up must come down. “
However, Shiller recently said he was considering getting into the BTC market. The Nobel Prize winner called Bitcoin “an impressive technology” and said he was tempted to get into cryptocurrency.
Nevertheless, Director Hasekamp emphasized:
The ultimate collapse of the crypto bubble is inevitable … The Netherlands must now ban Bitcoin.
He said that “several countries are now taking steps to curb the crypto hype due to harmful consequences – fraud, criminal use, gambling addiction, financial instability, not to mention the enormous waste of energy in manufacturing.”
The director warned that the Netherlands is lagging behind other countries in its attempts to regulate cryptocurrency trading platforms.
Hasekamp remarked: “Cautious regulation can also backfire: It legitimizes crypto as an honest financial product. Recent developments show that it is time to act: the longer we wait, the greater the negative consequences of the eventual crash. ”He concluded,“ The ultimate step is a total ban on production, trade and even ownership of cryptocurrencies. “
However, Dutch Finance Minister Wopke Hoekstra reportedly said on Friday that a ban is currently not the solution for the Netherlands. The finance minister acknowledges the concerns of the CPB director but believes that it is better to oversee the crypto industry. He was quoted as saying:
My observation now is that this is more effective than a total ban in the Netherlands.
What do you think of the CPB director’s prohibition recommendation? Let us know in the comments section below.
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