• Belgian foreign minister Johan Van Overtveldt has called for a total ban on cryptocurrencies.
• His comments come after a Basel Committee on banking recommends banks to develop protocols for holding and maintaining both Bitcoin and stablecoins in 2025.
• The European Parliament is gearing up to vote on significant crypto licensing regulations for the bloc next month.
Belgian Foreign Minister Calls for Crypto Ban
The Belgian Foreign Minister, Johan Van Overtveldt, recently tweeted that he believes an EU-wide ban should be imposed on crypto. He claims that it provides „no economic or social value“ and compared it to drugs, saying that if a government bans drugs then it should also ban crypto.
Basel Committee Recommends Banks Develop Protocols
This comment comes after a special Basel Committee on banking recommended that banks develop protocols for holding stablecoins and crypto by 2025. This was sparked due to the recent turmoil in the banking sector, including distress at Silvergate and Silicon Valley Bank which spread to European markets sending shares of banks like Credit Suisse plunging to record lows.
EU Parliament Gearing Up To Vote On Crypto Regulation
Van Overtveldt serves as the economic spokesperson for a group of 64 EU lawmakers and is spearheading parliament’s efforts to pass a law allowing trading of securities on distributed ledger technology. Next month, the EU parliament’s lawmakers are scheduled to meet and discuss crypto regulation which will provide structure for wallet providers and exchanges that adhere to governance and consumer protection standards.
Potential Benefits Of DLT Technology
Van Overtveldt recognizes the potential benefits of blockchain technology stating it has “enormous potential” to enhance digital services across sectors such as finance, healthcare, retail, transport etc. However, he noted that crypto needs more oversight because investors lack protection from large swings in prices caused by speculation or other factors outside their control.
Conclusion
It remains unclear whether or not Van Overtveldt’s call for an EU-wide ban on cryptocurrencies will be taken seriously by other member states but his views present an interesting perspective amid discussions about how best regulate this rapidly evolving space without stifling innovation.
