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 underneath the Ministry of Financial Affairs and Local weather Coverage, published an essay entitled “The Netherlands should ban bitcoin.”

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According to the essay’s title, Hasekamp lists a large listing of the reason why the Dutch authorities should implement an instantaneous whole ban on mining, buying and selling and holding Bitcoin (BTC). In keeping with the official, this might trigger the worth to plummet as a result of Bitcoin “has no intrinsic worth and is barely helpful as a result of others might settle for it.”

The chief cited a standard anti-crypto narrative, arguing that any cryptocurrency is unable to satisfy any of the three functions of money as a unit of account, technique of fee and retailer of worth. He additionally cited different frequent anti-Bitcoin arguments, similar to safety issues, dangers of fraud and scams, and argued that the crypto is great tool for legal actors.

Hasekamp stated that the Netherlands has been lagging behind international locations which have moved to “curb the crypto hype” in recent times. “Dutch regulators tried to tighten up the supervision of buying and selling platforms, however with out a lot success. The Central Planning Bureau identified the dangers of crypto buying and selling in 2018, however concluded that stricter regulation was not but crucial,” the official wrote.

Associated: Dutch regulators unsure of number of crypto investors in Netherlands

In his essay, Hasekamp paid particular consideration to Gresham’s legislation, a financial precept that states that overvalued forex, or “unhealthy cash,” tends to drive a legally undervalued forex, or “good cash,” out of circulation. Calling Bitcoin “unhealthy cash,” Hasekamp argued that Gresham’s legislation might work the alternative method with Bitcoin:

“Cryptocurrencies show all of the hallmarks of ‘unhealthy cash’: unclear origin, unsure valuation, shady buying and selling practices. […] Is Gresham’s legislation again? No, quite the opposite. Cryptocurrencies should not utilized in common fee transactions. […] Dangerous cash disappears from circulation as a result of no one desires to simply accept it anymore.”