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One Dutch official suggested that the mining, selling, and holding of Bitcoin should be prohibited in the Netherlands since it serves none of the three purposes of money and is useful to criminals.
While El Salvador has made Bitcoin legal tender, a Dutch politician has slammed the cryptocurrency, calling for an immediate universal ban.
Pieter Hasekamp, director of the Dutch Bureau for Economic Analysis under the Ministry of Economic Affairs and Climate Policy, published an essay entitled “The Netherlands must ban bitcoin.”
In keeping with the title of the article, Hasekamp provides a long list of reasons why the Dutch government should impose an immediate absolute ban on mining, trading, and owning Bitcoin (BTC). According to the official, this might lead the price of Bitcoin to fall because it “has no intrinsic value and is only valuable because others may accept it.”
The CEO highlighted a typical anti-crypto narrative, claiming that no cryptocurrency can fulfil any of money’s three roles as a unit of account, a method of payment, or a store of value. He also listed other popular anti-Bitcoin reasons, such as security issues, fraud and scam dangers, and suggested that the cryptocurrency is a valuable tool for criminals.
According to Hasekamp, the Netherlands has lagged behind nations that have attempted to “kerb the crypto hype” in recent years. “Dutch regulators attempted, but failed, to tighten up supervision of trading platforms. The Central Planning Bureau identified the hazards of cryptocurrency trading in 2018, but judged that tougher regulation was not yet required,” the official wrote.
Hasekamp emphasised Gresham’s rule in his article, a monetary theory that asserts that an inflated currency, or “bad money,” tends to push a lawfully undervalued currency, or “good money,” out of circulation. Hasekamp, who referred to Bitcoin as “bad money,” contended that Gresham’s law may act in the reverse direction 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.”