Cryptocurrencies should be banned in the same way that governments ban drugs, Johan Van Overtveldt, a member of the European Parliament and former Belgian finance minister, said in a tweet.
His controversial sentiments quickly sparked a heated response on Twitter, including from Cardano founder Charles Hoskinson.
Comments by Van Overtveldt they come in the wake of the recent bankruptcies of three US banks, Silicon Valley Bank, Signature Bank and Silvergate Bank, which brand digital assets “speculative poison”.
Crypto has ‘Has no economic and social value?’
As the European Parliament prepares for a crucial vote on groundbreaking digital asset licensing regulations for the European Union, Van Overtveldt, who serves as economic representative for a coalition of 64 EU lawmakers, expressed his views on the affair.
Van Overtveldt tweeted:
“If a government bans drugs, it should also ban cryptocurrencies.”
It also reduced those assets to “having no economic or social value.”
Another lesson to be learned from the current banking shock. Enforce a strict ban on cryptocurrencies. Speculative poison and without economic or social added value. If a government bans drugs, it should also ban cryptocurrencies.
— Johan Van Overtveldt (@jvanovertveldt) March 17, 2023
The EU is still in the process of implementing a comprehensive regulatory framework for its digital currency industry. This legislative package, known as Markets in Crypto Assets (MiCA), was approved by the EU institutions and member states in the summer of last year.
Its goal is to establish a set of guidelines for cryptocurrency service providers operating within the bloc’s 27 member countries.
Charles Hoskinson, Cardano Founder. Image: Cointribune
Charles Hoskinson reacts
Meanwhile, Charles Hoskinson, the creator of the Cardano blockchain, has expressed his perspective on politicians who attribute the fall of major US banks solely to cryptocurrencies.
In response to an article covering Van Overtveldt’s proposal to ban these types of digital assets, he implored the virtual currency community stand your ground and compile a register of politicians who oppose you. By doing so, come election time, they will have the knowledge to select only candidates who support cryptocurrency.
Central banks and politicians created this banking crisis and now they blame cryptocurrencies https://t.co/LjUou7TTgm don’t be fooled and keep a list to remember at the polls come election time. Be a one-issue crypto voter
—Charles Hoskinson (@IOHK_Charles) March 17, 2023
As the fallout from the banking crisis continues to unravel, numerous US lawmakers have claimed that the interconnections between financial institutions and bitcoin firms played a role in its downfall.
Events began with Silvergate’s decision to liquidate voluntarily on March 8, followed by Silicon Valley Bank on March 10, when a bank run ensued. New York regulators took over Signature Bank on March 12.
Crypto total market cap at a little over $1 trillion on the weekend chart at TradingView.com
Several EU politicians have also recently taken aim at cryptocurrencies, citing concerns about their potential to facilitate illicit activities such as money laundering and terrorist financing. Others have expressed similar sentiments to Van Overtveldt, arguing that cryptocurrency’s anonymity and lack of regulation make it a prime target for criminals.
These criticisms have sparked a heated debate within the EU about the role of bitcoin and other digital currencies in the modern economy and their potential risks and benefits.
-Reuters Featured Image
