Ex-Belgian Finance Minister Urges Crypto Prohibition Following Banking Crisis

Johan Van Overtveldt, former Belgian finance minister and ECR economic spokesperson, has called for a ban on crypto during banking crises. He argues that cryptocurrencies are not a reliable store of value during economic instability. Van Overtveldt’s stance is in line with the ECR’s conservative approach to economic policy. 

In a tweet, he connected cryptocurrency with drugs, suggesting that governments should ban both if they prohibit drug use. However, Van Overtveldt’s call for a cryptocurrency ban comes amid the European Parliament’s vote on new crypto licensing guidelines.

The 705 members of the Parliament are expected to vote as soon as next month on the Markets in Cryptocurrency. Assets bill, which will create a regulatory framework for wallet providers and exchanges if they adhere to governance and consumer-protection standards.

The failure of crypto-friendly Silvergate and Silicon Valley Bank has caused banking sector turmoil and repercussions on European markets. In response, Van Overtveldt made comments regarding the situation.

Swiss National Bank loaned $53B to Credit Suisse, causing the bank’s shares to plummet to a historic low. According to Van Overtveldt, cryptocurrencies are mere speculation with no economic or social value. He advocates for a strict crypto ban, citing current banking issues as a lesson to be learned.

Van Overtveldt’s role was crucial in the Parliament’s development of a bill allowing DLT-based securities trading. He has previously praised the potential of the technology underpinning crypto to improve productivity. 

The Future Of Cryptocurrency: Continuing Debate And Discussion

Van Overtveldt’s call for a crypto ban is just one of the many voices in the ongoing debate on regulating cryptocurrencies. While some argue for a strict ban, others believe holding crypto is necessary to protect investors and ensure stability in the market.

Crypto regulation vote outcome aside, the crypto debate will persist. As digital currencies and blockchain technology gain popularity, governments and financial institutions must balance innovation, stability, and security in their approach. This requires careful consideration of regulations and policies to foster growth while managing risk.

Related Reading | Indian And UAE Banks Sign MoU To Develop CBDC

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

Comments (No)

Leave a Reply