Anti-Communist Central Planning

Hungarian central bank: Crypto must be banned across the EU

The president of the Hungarian National Bank opined that the mining and trading of crypto assets must be banned. Not just in Hungary but across the EU.

China declared all cryptocurrency activities illegal last September and Russia’s central bank proposes ban on crypto trading and mining /Max Seddon and Eva Szalay, Jan 20 2022, FT/.
I perfectly agree with the proposal and also support the senior EU financial regulator’s point that the EU should ban the mining method used to produce most new bitcoin.
It is clear-cut that cryptocurrencies could service illegal activities and tend to build up financial pyramids. Russia’s central bank is right saying that “the breakneck growth and market value of cryptocurrencies is defined primarily by speculative demand for future growth, which creates bubbles”.
The EU should act together in order to preempt the building up of new financial pyramids and financial bubbles. EU citizens and companies would be allowed to own cryptocurrencies abroad and regulators will track their holdings.”

He wrote it in reaction to the news that “Russia’s central bank proposes ban on crypto trading and mining”. In other words, he may not be sure what those “Bitcoin-like assets” are, but he knows that his autocratic role models, the Chinese and the Russian dictators have banned them – or are planning to do so – so he knows all he needs to know.

I guess they can start banning cash as well because cash has been behind ALL pyramid schemes and serviced ALL illegal activities, ever, before those bitcoin thingies appeared.

Central banks, on the other hand, are only hostile to inflation when it suits them. When they are explicitly and proudly loyal to whatever the government wants from them (like the Hungarian one), they are bona fide printing presses, justifying the development of all kinds of assets with limited supply – crypto or otherwise. Except crypto can be bought by mere peasants. Art collection is the realm of the rich only.

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