While El Salvador adopts bitcoin as legal tender, a Dutch official decimated the cryptocurrency, demanding an immediate outright ban.
Peter Hasekamp, director of the Dutch Bureau for Economic Analysis under the Ministry of Economic Affairs and Climate Policy, published an essay titled “The Netherlands should ban bitcoin”.
In line with the title of the essay, Hasekamp lists a comprehensive list of reasons why the Dutch government should immediately implement a complete ban on the mining, trading and holding of bitcoin (BTC). According to the official, this could cause the price to drop because bitcoin “has no intrinsic value and is only valuable because others can accept it.”
The executive argued, citing a common anti-crypto narrative, that any cryptocurrency is unable to fulfill any of the three functions of money as a unit of account, a means of payment, and a store of value. He also cited other general anti-Bitcoin arguments, such as security concerns, the risk of fraud and scams, and argued that crypto is a useful tool for criminal actors.
Hasekamp said the Netherlands is lagging behind countries that have moved in recent years to “curb cryptocurrency hype.” “Dutch regulators attempted to tighten monitoring of trading platforms, but without much success. The Central Planning Bureau pointed to the risks of crypto trading in 2018, but concluded that stricter regulation was not yet necessary,” the official said. Wrote.
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In his essay, Hasekamp paid particular attention to Gresham’s law, a monetary theory that states that high-value currency, or “bad money”, can legally drive undervalued currency, or “good money”, out of circulation. gives. Calling bitcoin “bad money”, Hasekamp argued that Gresham’s law could work the opposite way with bitcoin:
“Cryptocurrencies exhibit all the hallmarks of ‘bad money’: unclear origins, uncertain valuations, shady business practices. […] Is Gresham’s Law Back? No, on the contrary. Cryptocurrencies are not used in regular payment transactions. […] Bad money disappears from circulation because no one wants to accept it anymore.