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The head of the Dutch Bureau of Economic Policy Analysis is part of the country’s Ministry of Economic Affairs and Climate Policy. He predicted that “the crypto bubble will eventually collapse”. He urged the government to immediately ban Bitcoin and other cryptocurrencies. However, the country’s finance minister disagrees that the ban on cryptocurrency is correct for the country.
Pieter Hasekamp, director of CPB’s Dutch Bureau of Economic Policy Analysis (CPB), published an article on the official CPB website on Friday entitled “The Netherlands must ban Bitcoin.” This article was originally written for publication in the Het Financieele Dagblad daily newspaper.
CPB is part of the Ministry of Economic Affairs and Climate Policy. Its director is appointed by the minister after consultation with other members of the government. However, the bureau’s website stated that CPB is completely independent in terms of its work. As the country’s central planning office, CPB conducts scientific research aimed at contributing to the economic decision-making process of politicians and policy makers.
Hasekamp has served as CPB Director since March 1, 2020. He used to be the Director of the Taxation Department of the Ministry of Finance and the Director of the Health Insurance Department of the Ministry of Health, Welfare and Sports.
After studying the use of cryptocurrency as currency, he concluded:
Cryptocurrency is not suitable as an accounting unit and payment method outside the criminal circle; its use as a store of value is based on the hope that cryptocurrency will one day replace real money. But this will not happen.
The director continued: “Cryptocurrency is essentially neither currency nor financial product, but an example of the infectious narrative that Nobel Prize winner Robert Schiller said: a person believes because other people believe it’s contagious. Story. Gresham’s law is replaced by Newton’s law: what goes up must go down.”
However, Schiller recently stated that he is considering being active in the BTC market. The Nobel Prize winner called Bitcoin “an impressive technology” and he said he would like to enter the cryptocurrency field.
Nonetheless, Director Hasekamp emphasized:
The ultimate collapse of the crypto bubble is inevitable… The Netherlands must now ban Bitcoin.
He further stated, “Due to fraud, criminal use, gambling addiction, financial instability, not to mention the huge energy waste in production, several countries are now taking measures to curb crypto hype.”
The director warned that the Netherlands lags behind other countries in regulating cryptocurrency trading platforms.
Hasekamp points out: “Prudent regulation can also be counterproductive: it legitimizes encryption as a real financial product. Recent developments have shown that it is time to act: the longer we wait, the more negative consequences of the eventual collapse. Big.” He concluded: “The final step is to completely ban the production, trading and even possession of cryptocurrency.”
However, according to reports, Dutch Finance Minister Wopke Hoekstra said on Friday that the ban is not the current Dutch solution. While acknowledging the concerns of the CPB directors, the Minister of Finance believes that it is best to monitor the encryption industry. He was quoted as saying:
My observation now is that this is more effective than the comprehensive ban in the Netherlands.
What do you think of the CPB director’s ban proposal? Let us know in the comments section below.
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