Crypto should be banned in the same way governments ban drugs, Johan Van Overtveldt, a member of the European Parliament and former Belgian Finance Minister, said in a tweet.
The controversial sentiment quickly sparked heated responses on Twitter, including from Cardano founder Charles Hoskinson.
said Van Overtveldt because of the recent failure of three US banks – Silicon Valley Bank, Signature Bank, and Silvergate Bank – calling digital assets “speculative poison.”
Crypto Has ‘No Economic, Social Value?’
As the European Parliament prepares for a crucial vote on a revolutionary digital asset licensing regulation for the European Union, Van Overtveldt, who is the economic representative for the coalition of 64 EU parliamentarians, expressed his views on the matter.
Van Overveldt tweeted:
“If the government bans drugs, it should also ban crypto.”
He also reduced the asset to “no economic or social value.”
Another lesson to be learned from the current banking turmoil. Implement a strict ban on cryptocurrencies. The poison is speculative and has no added economic or social value. If the government bans drugs, it should also ban cryptos.
— Johan Van Overtveldt (@jvanovertveldt) March 17, 2023
The EU is still in the process of implementing a comprehensive regulatory framework for the digital currency industry. This legislative package, known as Markets in Crypto Assets (MiCA), was approved by EU institutions and member states last summer.
It aims to create guidelines for cryptocurrency service providers operating in the bloc’s 27 member states.
Charles Hoskinson, Cardano Founder. Image: Cointribune
Charles Hoskinson Reacts
Meanwhile, Charles Hoskinson, the creator of the Cardano blockchain, has expressed his perspective on the politicians who caused the collapse of major US banks just for cryptocurrencies.
In response to an article covering Van Overtveldt’s proposal to ban these types of digital assets, he ask the virtual currency community to stand firm and compile a record of opposing politicians. That way, come election time, they will have the knowledge they need to vote for only crypto-supporting candidates.
Central banks and politicians created this banking crisis and now they are blaming crypto https://t.co/LjUou7TTgm for not falling and keeping a list to remember in the ballot box at election time. Being a crypto voter is one problem
– Charles Hoskinson (@IOHK_Charles) March 17, 2023
As the repercussions of the banking crisis continue to unravel, many US legislators insist that the interconnection between financial institutions and bitcoin companies played a role in the collapse.
The event began with Silvergate’s decision to voluntarily liquidate on March 8, followed by Silicon Valley Bank on March 10, when the bank opened. New York regulators then took over Signature Bank on March 12.
Crypto total market cap at a little over $1 trillion on the weekend chart at TradingView.com
Some European Union politicians have also recently taken aim at cryptocurrency, expressing concern about its potential to facilitate illegal activities such as money laundering and the financing of terrorism. Others have expressed similar sentiments to Van Overtveldt, arguing that cryptocurrency’s anonymity and lack of regulation make it a prime target for criminals.
The criticism sparked a heated debate in the EU about the role of bitcoin and other digital currencies in the modern economy and their potential risks and benefits.
-Image from Reuters