Johan Van Overtveldt, a former Belgium Minister of Finance and a current member of the Parliament in Europe, expressed his belief on Twitter that cryptocurrency should be prohibited, like how governments prohibit drugs.
After Johan Van Overtveldt expressed his controversial views on Twitter, Cardano creator Charles Hoskinson was among those who responded with a heated reaction. Johan Van Overtveldt commented after three United States banks, Signature Bank, Silicon Valley Bank, and Silvergate Bank, labeled virtual assets “speculative poison” following their recent failures.
Digital Tokens Lack Socioeconomic Value
Johan Van Overtveldt, the financial representative for an alliance of sixty-four European Union legislators, shared his perspective on digital tokens as the European Parliament prepared for a significant vote on ground-breaking licensing regulations for the European Union.
Van Overtveldt tweeted that if a government outlaws drugs, it should prohibit cryptocurrencies. He also dismissed digital assets as having no social or economic significance.
The European Union is currently working on establishing a complete set of regulations for its digital currency sector. This package of laws, called Markets in Cryptocurrency Assets, was given the green light by European Union institutions and member countries during the previous year’s summer.
The objective of MiCA is to create a set of standards for crypto service providers conducting business in the twenty-seven member states of the European Union.
Charles Hoskinson Responds
Recently, Charles Hoskinson, the founder of Cardano blockchain, shared his views on officials blaming cryptocurrencies for the collapse of prominent United States banks.
Following an article discussing Van Overtveldt’s suggestion to prohibit cryptocurrencies, Hoskinson urged the digital currency community to stand firm and document the names of politicians against it. Doing this allows them to make informed decisions during elections and only vote for candidates who favor cryptocurrencies.
As the consequences of the banking saga continue to unfold, many United States lawmakers have claimed that the links between bitcoin companies and financial institutions contributed to their collapse.
The events began with Silvergate’s announcement of voluntary liquidation on March 8th, followed by Silicon Valley Bank on March 10th, as a bank run occurred. Later, on March 12th, regulators in New York took control of Signature Bank.
Recently, a few European Union politicians have raised concerns over using cryptocurrencies, stating that it may facilitate unlawful activities like terrorism financing and money laundering.
According to some, cryptocurrencies’ anonymity and unregulated nature have made them vulnerable to criminal activities. Similar to Van Overtveldt’s views, other lawmakers have also expressed concerns about the potential risks associated with digital currencies.
The criticisms surrounding cryptocurrencies have ignited a contentious debate within the European Union about the role of digital currencies in the modern economy and their possible advantages and risks.
This discussion has prompted various stakeholders to voice their opinions on addressing the challenges posed by digital currencies, including the need for stricter regulation, more comprehensive oversight, and better consumer protection measures.
Many advocates of cryptocurrencies argue that these innovative technologies have the potential to revolutionize the financial sector. Yet, at the same time, critics remain concerned about the risks they may pose to traditional financial systems.