Netherlands’ Bureau for Economic Policy Analysis director has forecasted “The ultimate collapse of the crypto bubble.” He encourages the government to ban Bitcoin (BTC) and other cryptocurrencies immediately. Nevertheless, the country’s finance minister argues that banning cryptocurrency is fit for the nation.
CPB Director Wants To Ban Bitcoin
Director of CPB Netherlands Bureau for Economic Policy Analysis (CPB), Pieter Hasekamp, released an article on the official CPB website last Friday titled “The Netherlands must ban bitcoin.” CPB originally wrote the article for publication in the daily newsprint Het Financieele Dagblad.
The CPB is a section of the Ministry of Economic Affairs and Climate Policy. The minister appoints its director in discussion with other members of the government. Yet, the CPB is fully self-governing as far as the components of its function are involved, the bureau’s website expresses. For example, as the national central planning office, the CPB does scientific study to contribute to politicians’ and policymakers’ economic decision-making process.
Hasekamp has remained the director of the CPB since March of last year. He was the former director-general for tax matters at the Ministry of Finance. He was also the Ministry of Health, Welfare, and Sport’s director.
After reviewing the use of digital currency as money, he finalized:
Cryptocurrencies are unsuitable as a unit of account and means of payment outside the criminal circuit; their use as a store of value is based on the hope that cryptocurrencies will one day replace real money. But that’s not going to happen.
Newton’s Law
Director Hasekamp continued stating that:
“Cryptocurrencies are essentially neither money nor a financial product, but an example of what Nobel laureate Robert Shiller calls a contagious narrative: a contagious story in which people believe because other people believe in it. Gresham’s law is replaced by Newton’s law: what goes up, must come down.”
Shiller recently announced that he was taking into consideration getting active in the BTC market. Calling Bitcoin “an impressive technology,” the Nobel laureate said he had been tempted to get into cryptocurrency.
Nonetheless, Director Hasekamp emphasized:
The ultimate collapse of the crypto bubble is inevitable … The Netherlands must ban bitcoin now.
He further stated that:
“Several countries are now taking steps to curb the crypto hype, due to harmful consequences – fraud, criminal use, gambling addiction, financial instability, not to mention the enormous energy waste in production.”
The director advised that the Netherlands is straggling behind other countries to control crypto trading platforms.
Hasekamp noted:
“Cautious regulation can also backfire: it legitimizes crypto as a bona fide financial product. Recent developments show that it is time to act: the longer we wait, the greater the negative consequences of the eventual crash.”
He concluded:
“The ultimate step is a total ban on production, trading and even possession of cryptocurrencies.”
Despite that, the Dutch finance minister, Wopke Hoekstra, allegedly announced Friday that banning is not the solution for the Netherlands right now.
Recognizing the CPB director’s anxieties, the finance minister believes that it is better to monitor the crypto industry. He was quoted as stating:
My observation now is that that is more effective than a total ban in the Netherlands.
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