The Netherlands must ban crypto currencies as soon as possible before the ‘invitable crash’ happens, according to Pieter Hasekamp, the director of the government’s economic think-tank CPB.
Unlike in other countries, the Dutch authorities have been slow to legislate on crypto currencies despite warnings by the CPB of its inherent ‘bad money’ characteristics, such as ‘fraud, criminal use, gambling addiction, financial instability and the dependence on huge amount of energy’, Hasekamp wrote in an essay for the Financieele Dagblad.
The lax approach to regulation is ‘legitimising’ crypto currencies, he said. ‘The longer we wait the bigger the negative consequences of the inevitable crash’, he said.
An immediate ban on the production, possession and trade of crypto currencies could deprive them of their lifeblood which is its ‘acceptance by others since it lacks intrinsic value’, Haseskamp said.
Such a ban will be difficult to police, experts say, because crypto currencies are not issued by financial institutions and are traded internationally. That was the reason finance minister Wopke Hoekstra rejected a ban in 2018.
According to some estimates around 700,000 people in the Netherlands are currently investing in crypto currencies.
Thank you for donating to DutchNews.nl
The DutchNews.nl team would like to thank all the generous readers who have made a donation in recent weeks. Your financial support has helped us to expand our coverage of the coronavirus crisis into the evenings and weekends and make sure you are kept up to date with the latest developments.
DutchNews.nl has been free for 14 years, but without the financial backing of our readers, we would not be able to provide you with fair and accurate news and features about all things Dutch. Your contributions make this possible.