Although El Salvador has approved BTC as an authorized currency, a Dutch minister slammed the cryptocurrency, stating that it doesn’t possess any of the qualities of a legal currency and is readily available to robbers. He urged the government to issue an immediate and complete prohibition on the use of Bitcoin.
The manager of the Dutch Bureau for Economic Analysis, Pieter Hasekamp, released a publication with the title ‘The Netherlands must ban Bitcoin.’ In agreement with the theme, he enumerated reasons why the administration has to issue a complete prohibition on all BTC-related transactions. According to him, this has the capacity to make the price fall due to the fact that BTC lacks innate value and only exists because people use it.
He went further and referred to a popular story against crypto, stating that it doesn’t meet up to any of the 3 qualities of a legal tender such as a means to settle bills, store of value, and standard unit. He later referred to other prevalent opinions on security issues and crime stating that cryptocurrency is highly unprotected from criminals.
The Dutch director said that the country has not put any strategy in place to regulate the use of cryptocurrency like some other nations. Most efforts to toughen the regulation failed. Three years ago, the Central Planning Bureau listed the perils associated with crypto transactions, however, it stated that making the law to be too harsh may not be important at the moment.
Hasekamp, in his publication, focused on Gresham’s rule which opines that currency with excessive value (bad money) will likely make the true currency lose its value. Hasekamp suggested that cryptos exhibit all the identities of bad money, which include uncertainty of value, ambiguous origin, and controversial market. He also noted that bad money goes into extinction when not patronized.
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