Hungarian central bank governor next in line to ban crypto

Matolcsy, governor of the central bank of Hungary, has said that he backs a ban on cryptocurrencies, not only in Hungary, but throughout the European Union.

The queue of central bankers coming forward to have their say on cryptocurrencies is seemingly endless. All come from different countries and regulatory jurisdictions, but all have pretty much the same thing to say. Crypto is a scam, threat, vehicle for money laundering, and other associated evils.

Governor Matolcsy is certainly toeing the party line with his utterances, and even joins the most radical of the world’s central bank governors by stating that crypto trading and mining should be banned in the EU.

In a recent press statement Matolcsy echoed his support of the EU regulator’s proposal to ban certain bitcoin mining methods:

“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.”

He also highlighted the Russian central bank view:

“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”.

He ended the short press statement by stating that EU nationals would still be allowed to hold cryptocurrencies, but only in jurisdictions outside of Europe. Regulators would also need to keep track of their holdings.

Opinion

Central bank governors are frightened and in despair. Total control over all finances has been their privilege for decades. An unassailable position up to now. However, private digital assets are flowing onto the scene at a speed that is bewildering.

Suddenly, citizens are realising that they can own their own money, completely out of the banking system, and be able to spend it on what they want, and send it to whom they choose, without any bank telling them they can’t.

It’s always been that the banks know what is best for us, and that we need to keep our noses clean and conform if we are to be allowed to avail ourselves of a bank account, and not have it frozen if the bank thinks we are dealing with the ‘wrong type’ of business or individual.

We are given 0.0 something or other percentage in interest on our account as a sop for keeping our currency there, and each year our purchasing power dwindles by probably at least 15%, according to the shadowstats website.

For central bankers it appears to be beyond the pale that anyone should step out of line and invest in cryptocurrency and earn well above 10% by staking and farming it. 

Central bankers and governments have got us into this mess. Happily for them, given a compliant world media, the vast majority of the population are still clueless as to what is really going on, and for now the pitchforks are just leaning against the barn wall.

However, for these central bankers to pompously spout their nonsense about cryptocurrencies for all to hear is just so disingenuous. It should probably be granted that not one of them has probably done any research at all into cryptocurrency. But that should not be a reason for individuals so supposedly extremely well educated in finance to remain in such ignorance.

We look forward in suffering to the next central bank governor to step forward and tell the populace to stay well clear of crypto. It is a process that we must go through before logic, transparency, and truth win out in the end.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.