Politicians in El Salvador, Paraguay and Panama, are championing for legalization of Bitcoin and cryptocurrencies. Standing firm on the opposite end of the spectrum is the Netherlands’ Head of Central Planning Bureau (CPB), Peter Hasekamp.
Bitcoin and Cryptocurrencies are Facing an Inevitable Crash: Peter Hasekamp
Hasekamp wrote an essay for the Financieele Dagblad with his Bitcoin and crypto ban proposal. The paper strongly recommends that the Netherlands cabinet impose a blanket ban on the mining, holding and trading of Bitcoin and all other cryptocurrencies. Hasekamp believes the crash of cryptocurrencies is inevitably approaching. The Netherlands should thus act swiftly before this doomsday of crypto arrives.
The Netherlands’ head of CPB Hasekamp argued that the Netherlands has been slow on crypto regulations compared to other countries. He added that the Dutch government is well aware of the immanent features of Bitcoin and crypto, which he termed as “bad money characteristics.”
Some of the disadvantages of crypto mentioned in Hasekamp’s Bitcoin ban essay are their popularity in illicit transactions such as fraud, gambling, and criminal use. Moreover, the heightened discussion on the energy level consumption and the carbon print crypto mining leaves on the environment should be enough reason for the Netherlands to ban it.
It Is Impossible to Enforce a Bitcoin and Crypto Ban, China Tried
If the Netherlands heeds the proposals of Hasekamp’s Bitcoin ban essay, it will not be the first country to impose a crypto ban. China banned cryptocurrencies back in September 2017, starting with disallowed ICOs and major crypto exchanges.
However, despite the ban, China is the producer of the biggest part of the Bitcoin hash rate. The observation adds to the fact that it will be challenging to police a ban on cryptocurrencies.
The Netherlands’ finance minister Wopke Hoekstra rejected a similar proposal for banning Bitcoin back in 2018. He cited how challenging it will be for the country to enforce the ban considering that financial institutions do not issue Bitcoin. Moreover, cryptocurrencies are traded internationally. Executing a local ban with this age of the internet is close to impossible.