Does the Netherlands declare war on Bitcoin?

Bitcoin Trending Netherlands

A Dutch government official argued that digital currency “does not fulfill any of the three functions of money and is practical for criminals.”

Days after the government of El Salvador announced that it will adopt Bitcoin as legal tender, a Dutch official spoke in the opposite direction and called for a total ban on cryptocurrency in his country.

Pieter Hasekamp, director of the Dutch Office for Economic Analysis, published a report entitled “The Netherlands must ban bitcoin.”

Hasekamp lists a list of reasons why the government should impose a total ban on mining, trading and owning BTC.

In short, he argues that digital currency “does not fulfill any of the three functions of money and is practical for criminals.”

As he explained, Bitcoin “has no intrinsic value and is only valuable because others can accept it”, but ultimately it has no utility as a unit of account, means of payment and store of value. He also cited the existing risks of fraud and scams.

Hasekamp said the Netherlands has lagged behind countries that promoted policies to curb the cryptocurrency boom in recent years. “In fact, Dutch regulators tried to tighten supervision of trading platforms, but without much success,” the official noted.

“Cryptocurrencies have all the characteristics of ‘bad money’: unclear origin, uncertain valuation and shady trading practices,” he concluded.