The cabinet must ban Bitcoin and other cryptocurrencies. The chief adviser to the cabinet, Pieter Hasekamp, the director of the Central Planning Bureau, wrote in an FD article. He warned of the collapse of cryptocurrencies.
“The following applies to investors and governments: Whoever takes the last action is the loser. The Netherlands must now ban Bitcoin.” write Haskamp.
In recent weeks, the value of Bitcoin has halved, and some experts believe that this decline will continue.
According to Hasekamp, cryptocurrencies have no intrinsic value and their appeal comes only from the acceptance of others.
The director said that the current (private) network currency performs much worse than public currency in all aspects. There is no value retention, ease of use is affected by lack of acceptance, and security is undermined by outright scams. “Online transactions score very high only in terms of privacy-and anonymity is what makes them attractive to criminals.”
In practice, the Dutch ban will be difficult to enforce. Cryptocurrencies are not issued by financial institutions.
In El Salvador, Bitcoin was considered legal tender on Wednesday. Entrepreneurs are no longer allowed to refuse to use cryptocurrency payments.