The agitation against Bitcoin appears to be increasing alongside its numerous adoptions. An official in the Netherlands has called out for a blanket ban on BTC, stating that the digital asset doesn’t meet the basic functions of money. The call follows after El Salvador adopted Bitcoin as a legal tender.
The Dutch official Pieter Hasekamp is the Director of the Dutch Bureau for Economic Analysis. He published an article “The Netherlands Must Ban Bitcoin.” Hesekamp pointed out various indicators of why the cryptocurrency should not be accepted.
Hesekamp opined that the digital gold has no intrinsic value as its value is pegged to its acceptance by others. In the essay, he demanded that the government clamp down on Bitcoin mining, trading, and holding. He further highlighted that the asset does not fulfill the three functions of money which are, unit of account, means of payment, and store of value.
Hesekamp’s Basic Arguments Against Bitcoin
Just like other critics, Pieter Hesekamp cited concerns on financial security, money laundering, and the high possibility of criminals utilizing it. The official further criticized the Dutch government for not “curbing the hype” of Bitcoin when other countries did. He however affirmed that The Central Planning Bureau exposed the risks of the leading crypto asset but did not proceed further to regulate it.
Gresham’s law was referenced in the essay by the Dutchman. The law stated that “overvalued currency, or “bad money,” tends to drive a legally undervalued currency, or “good money,” out of circulation”. He attributed BTC to being “bad money” saying it isn’t used for regular payment transactions.