The governor of the Hungarian central bank, like China, is calling for an EU-wide ban on cryptocurrencies
Governor György Matolcsy of the Central Bank of Hungary expressed Support for the idea of a cryptocurrency ban in the European Union (EU).
“China declared all crypto activities illegal last September (…) I fully agree with the proposal and also support the position of the EU’s top financial regulator that the EU should ban the mining method used to generate Bitcoin. “
György Matolcsy – Governor of the Central Bank of Hungary
Matolcsy also explained his position using the example of China and Russia. The People’s Bank of China (PBoC) last year banned all crypto-related activities, from mining to trading. A while ago, the Central Bank of Russia also announced that it is considering a ban on crypto-related activities. However, the Russian authorities and other authorities do not seem to agree with the central bank’s announcement.
“It is clear that cryptocurrencies can serve illegal activities and tend to build financial pyramids. The Central Bank of Russia is right when it says that “the dizzying growth and market value of cryptocurrencies is primarily driven by speculative demand for future growth, creating a bubble.” .
Therefore, he stressed that the EU “is working together to prevent the formation of new financial pyramids and bubbles”.
Additionally, EU citizens and businesses can own cryptocurrencies abroad, but there will be disclosure guidelines for regulators to track holdings.
Just early last month, Erik Thedéen, vice president of the European Securities and Markets Authority, pushed for the phasing out of the energy-intensive proof-of-work (POW) mining model. He warned against the increased use of renewable energies in mining. In addition, it called a “national problem” for Sweden.
Since last year, several other countries have also reported energy shortages due to increased mining activity. As more and more miners turn to renewable energy sources, it is clear that they still have energy issues to deal with in many parts of the world. Countries like Russia, Kazakhstan and Kosovo are also reporting turbulent energy situations.
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