By Shelly Melancon (Switzerland)
As a matter of necessity, the European Union should impose a total ban on cryptocurrencies throughout Europe, said a top-ranking central bank official.
The Governor of Hungary’s apex bank, György Matolcsy, has put forward a motion to halt all Bitcoin and crypto-related transactions among member states of the European Union, calling for a complete and total ban. He believes that the financial arm of the union should put a mechanism in place to stop the mining of cryptocurrencies and the processes involved in creating new ones.
He wants regulators to track down the international activities of EU citizens related to cryptocurrency, their holdings, and businesses used in digital token transactions. He joined numerous central bank executives who saw cryptocurrencies as an unofficial monetary system capable of aiding and abetting illegal financial transactions and working outside existing economic laws.
Matolcsy voiced the familiar opinions of other cryptocurrency critics, saying the ban became necessary for financial security because there is no mechanism to check the excesses of the mining, distribution, and transactions carried out on blockchain networks.
According to him, the EU should have a tough stance on the use and distribution of digital coins to checkmate activities that are not in line with mainstream financial institutions by acting as one to forestall the development and creation of new coins.
Matolscy calls for swift changes in the structure and operations of financial institutions and services for the whole of Europe, stressing that failure to consider emerging trends is a recipe for disaster. As far as he is concerned, cryptocurrency has no significant role in the scheme of things if financial services are to be taken into perspective.
In contrast to the conventional financial system, cryptocurrencies further entrench the vast divide between owners and users of digital coins. The vast majority of users own just a fraction of the supposed wealth. At the same time, the big guns become wealthier by the day.
The central banker equates cryptocurrency activities with financial pyramid schemes, where most of their doings are morally and ethically wrong. Cryptocurrencies serve as a conduit for illegal activities to occur.
In his statement to support the proposed ban, the top banker points out what China has done to cripple the cryptocurrency industry in the communist nation by forbidding all crypto-related transactions in September 2021. He also cited the example of Russia, where the use of digital coins was banned by the government, failing to acknowledge the part where the government later overturned the restriction placed in the first place.
However, in January, the government overturned Russia’s proposed ban on cryptocurrency after agreeing with the crypto investors. And other financial regulatory agencies saw the government making encouraging moves to engage in the sector by making a positive impact through legislation.
It will be interesting to see how far Matolscy’s call to ban cryptocurrency in the EU goes, considering how widely accepted it has come to be among people, not just in the EU.
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