György Matolcsy, Hungary’s central bank (MNB) governor, believes the time has come to ban crypto trading and mining in the EU, according to a post published on the MNB’s Facebook page.
China declared all cryptocurrency activities illegal last September, and Russia’s central bank is proposing a ban on crypto trading and mining, Matolcsy notes in his post.
Matolcsy says he “perfectly agrees with the proposal,” and also supports the senior EU financial regulator’s point that the EU should ban the mining method used to produce most new bitcoin.
According to Governor Matolcsy, it is “clear-cut” that cryptocurrencies could “service illegal activities and tend to build up financial pyramids.” Therefore, Russia’s central bank is right in saying that “the breakneck growth and market value of cryptocurrencies is defined primarily by speculative demand for future growth, which creates bubbles,” Matolcsy noted.
The head of the central bank urges EU countries to act together in order to preempt the building up of new financial pyramids and financial bubbles. This does not mean, of course, that EU citizens should completely abandon these virtual currencies, as Matolcsy says that “EU citizens and companies would be allowed to own cryptocurrencies abroad and regulators will track their holdings.”
Featured photo by Zsolt Czeglédi/MTI