The director of the Netherlands Bureau for Economic Policy Analysis, a part of the country’s Ministry of Economic Affairs and Climate Policy, predicted “the final collapse of the crypto bubble.” He urged the government to immediately ban bitcoin and other cryptocurrencies. However, the country’s finance minister disagrees that it is right for the country to ban cryptocurrencies.
CPB Director Wants Cryptocurrencies To Be Banned
Peter Hasekamp, director of the CPB Netherlands Bureau for Economic Policy Analysis (CPB), published an article on the official CPB website on Friday titled “The Netherlands should ban bitcoin.” This article was originally written for publication in the daily newspaper Het Financial Dagblad.
The CPB is a part of the Ministry of Economic Affairs and Climate Policy. Its director is appointed by the minister in consultation with other members of the government. However, CPB is completely independent as far as the content of its work is concerned, states the Bureau’s website. As the country’s central planning office, the CPB conducts scientific research that aims to contribute to the economic decision-making process of politicians and policy makers.
Hasekamp has been the Director of CPB since March 1, 2020. He was previously the Director General of Tax Affairs in the Ministry of Finance and Director of Health Insurance in the Ministry of Health, Welfare and Sports.
After examining the use of cryptocurrencies as money, he concluded:
Cryptocurrencies are unsuitable as a unit of account and means of payment outside the criminal circuit; Its use as a store of value is based on the hope that one day cryptocurrencies will replace real money. But that is not going to happen.
The director continued: “Cryptocurrency is essentially neither money nor a financial product, but what Nobel laureate Robert Schiller calls an infectious narrative, an example of this: an infectious story in which people believe because others believe in it Gresham’s law is replaced by Newton’s law: what goes up must come down.”
Schiller, however, recently said that he was considering becoming active in B T c Market. Calling bitcoin “an impressive technology”, the Nobel laureate said he was tempted to get into the cryptocurrency.
Nonetheless, Director Hasekamp emphasized:
The eventual collapse of the crypto bubble is inevitable… The Netherlands should now ban bitcoin.
He further added that “many countries are now taking steps to curb crypto propaganda, due to the harmful consequences – fraud, criminal use, gambling addiction, financial instability, not to mention huge energy waste in production.”
The director warned that the Netherlands is lagging behind other countries in their efforts to regulate cryptocurrency trading platforms.
Hasekamp said: “Cautious regulation may backfire: it legalizes crypto as a genuine financial product. Recent developments suggest it is time to act: the longer we wait, the final crash. The more negative the consequences will be.” “The final step is a complete ban on the production, trade and even possession of cryptocurrencies,” he concluded.
However, the Dutch finance minister, Vopke Hoekstra, reportedly said on Friday that imposing sanctions is not the solution for the Netherlands yet. Acknowledging the concerns of the CPB director, the Finance Minister believes that it is better to monitor the crypto industry. He was quoted as saying:
My observation now is that it is more effective than a total ban in the Netherlands.
What do you think about the CPB director’s ban recommendation? Let us know in the comments section below.
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