European Parliament Member Calls for Ban on Cryptocurrencies

03/17/2023 11:42 • Blockchain Buzz • 157 views

Johan Van Overtveldt, a member of the European Parliament and former Belgian finance minister, reportedly called for a ban on cryptocurrencies in the wake of banking turmoil in a tweet on Friday. Overveldt says there is another lesson to be learned from the current banking turmoil. A strict ban on cryptocurrencies is imposed, and these assets are merely speculative and have no economic or social value. If the government bans drugs, it should also ban cryptocurrencies, as the impact of the failure of the cryptocurrency friendly Silvergate and Silicon Valley banks has spread to the European market, including pushing the stock price of Credit Suisse to historical lows and forcing it to borrow $53 billion from the Swiss National Bank.

Former Belgian Finance Minister: Cryptocurrency should be banned

Analysis based on this information:

Johan Van Overtveldt, a member of the European Parliament and a former Belgian finance minister, has called for a ban on cryptocurrencies following the recent banking turmoil. He believes that these assets are purely speculative and have no real economic or social value. Overtveldt’s statement on Twitter came amidst the failure of cryptocurrency-friendly banks such as Silvergate and Silicon Valley, causing the crisis to spread to the European market.

Overtveldt’s statement highlights the need to consider more stringent regulations on cryptocurrencies. Unlike fiat currencies, cryptocurrencies are not backed by governments or any tangible asset. Instead, they derive their value solely from supply and demand in the market. Critics argue that this model makes cryptocurrencies volatile and prone to market manipulation.

The banking turmoil that Overtveldt refers to is the recent collapse of cryptocurrency-friendly banks, particularly in Silicon Valley. The failure of these banks has had a ripple effect on the European markets, including pushing Credit Suisse’s stock prices to record lows and forcing them to borrow a whopping $53 billion from the Swiss National Bank.

Overtveldt also compared the ban on cryptocurrencies to the ban on drugs, arguing that if the government bans drugs, then it should also impose a ban on cryptocurrencies. The argument stems from the belief that cryptocurrencies facilitate illegal activities such as money laundering and terrorism financing.

In conclusion, Overtveldt’s call for a ban on cryptocurrencies should be taken seriously. Governments and regulatory authorities around the world must address the challenges posed by cryptocurrencies’ lack of economic and social value, highlighting their speculative nature while being a source for financial fraud and other illegal activities. Therefore, regulating cryptocurrencies may limit their adverse impacts on the global economy and financial system, ensuring that they are not used for illicit purposes.

This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/5314.htm

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

European Parliament Member Calls for Ban on Cryptocurrencies

Former Belgian Finance Minister: Cryptocurrency should be banned

Related recommendations