If it was up to certain people in The Netherlands, central banks worldwide (and especially in the European Union) should disallow any Bitcoin-related transactions immediately. While it is not the first time we hear such a statement, given the recent Bitcoin price decline, it seems to be a well-timed message to warn people once again about this digital currency.
The person responsible for this statement is Paul Koster, director of the Vereniging van Effectenbezitters (Association of Stockholders) in The Netherlands. Earlier this morning, Mr. Koster announced his negative and judgemental stance towards Bitcoin and other cryptocurrencies to BNR, a Dutch news organization.
The reason for coming out with such a statement at this point in time is because of the recent headlines on every major mainstream news outlet detailing how Bitcoin lost a quarter of its value in a relatively short span of time. As most Bitcoin enthusiasts are aware, Bitcoin has been going through a rough patch in terms of value, but adoption and awareness are on the rise.
Paul Koster had the following to say : “I really can’t understand why a newly-developed financial system outside of our current legal financial model is legitimate. I do understand technology is advancing at an accelerated pace, but I strongly feel central bankers should be wary and reluctant about getting involved in “other” financial systems. In fact, it would be better if they prohibited Bitcoin immediately.”
Bitcoin has been haunted by these kinds of statements ever since the cryptocurrency started gaining value and mainstream media attention. Because of Bitcoin’s disruptive technology and financial open ledger, most enthusiasts feel banks are afraid of the impact Bitcoin will have on their own financial growth. If Bitcoin were to take off as an actual “legitimate” currency, the consequences for the current financial and economical infrastructure would be massive.
Mr. Koster concluded his statement by adding the following : “These volatile Bitcoin price swings prove that this market is not supervised and/or regulated by any government or institution. As a result, it is impossible for banks, consumers, investors and retailers to estimate the potential risks of getting involved with Bitcoin.”
While it is clear that Paul Koster wants absolutely nothing to do with Bitcoin, most central bankers have not yet taken a stance towards cryptocurrency. In fact, there are a few pro-Bitcoin banks to be found in the European Union. Fidor Bank ,for example, only deals with Bitcoin-related customers and companies.