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 below the Ministry of Financial Affairs and Local weather Coverage, printed an essay entitled “The Netherlands must ban bitcoin.”
According to the essay’s title, Hasekamp lists a large record of explanation why the Dutch authorities should implement a direct complete ban on mining, buying and selling and holding Bitcoin (BTC). In line with the official, this might trigger the value to plummet as a result of Bitcoin “has no intrinsic value and is only valuable because others may accept it.”
The manager cited a typical anti-crypto narrative, arguing that any cryptocurrency is unable to meet any of the three features of cash as a unit of account, technique of cost and retailer of worth. He additionally cited different frequent anti-Bitcoin arguments, reminiscent of safety considerations, 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” in recent times. “Dutch regulators attempted to tighten up the supervision of trading platforms, but without much success. The Central Planning Bureau pointed out the risks of crypto trading in 2018, but concluded that stricter regulation was not yet necessary,” 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 “bad money,” tends to drive a legally undervalued forex, or “good money,” out of circulation. Calling Bitcoin “bad money,” Hasekamp argued that Gresham’s legislation may work the alternative manner with Bitcoin:
“Cryptocurrencies demonstrate all the hallmarks of ‘bad money’: unclear origin, uncertain valuation, shady trading practices. […] Is Gresham’s law back? No, on the contrary. Cryptocurrencies are not used in regular payment transactions. […] Bad money disappears from circulation because nobody wants to accept it anymore.”