György Matolcsy, governor of the Hungarian Central Bank, calls for banning EU cryptocurrency activities. Matolcsy suggests that all crypto operations that include trading and mining should be prohibited in European countries.
Through a report published on the Magyar Nemzeti Bank’s website, Governor Matolcsy notes that his new point of view is in line with many other states. In regard, Matolcsy emphasizes the Russian Central Bank and Erik Thedéen, the Vice-Chair of the European Securities and Market Authority (ESMA), who has called for the prohibition of Proof-of-Work (PoW). In addition, Matolcsy stated that he agrees with the EU financial regulator’s point to ban the mining of cryptocurrencies. However, he further adds the risks of cryptocurrency use. According to the governor, the utility of cryptocurrencies could bring illegal operations that might build up financial pyramids.
On the other hand, the head of the Hungarian Central Bank brings back what Russian Central Bank said about the cryptocurrency industry. According to the Russian bank, risky demand for future growth is a characteristic of the fast expansion and market value of cryptocurrencies. As a result, this path causes liability.
Global Concerns About The Crypto Ban
Correspondingly, authorities throughout the globe are concerned about the possibility of criminals using cryptocurrencies. Regarding that, several states have taken steps to limit their growth. Governor Matolcsy notes that the ESMA executive does not wish to absolute prohibit cryptocurrencies as the Hungarian leader had suggested. However, there is widespread consensus on slowing down the adoption of PoW mining. Such a process is very energy-intensive as it requires powerful computers to operate 24/7.
China declared all cryptocurrency activities illegal last September (…) 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.
Read more: https://t.co/pBTAH6mney
— György Matolcsy (@gyorgy_matolcsy) February 11, 2022
According to Governor Matolcsy, EU residents and corporations will buy cryptocurrencies, while authorities will track their holdings (HODLing). This proposal has resulted in preventing the creation of new financial pyramids and bubbles. The influence of the Hungarian Central Bank on the EU may not be as great as that of the regional governments. However, due to the proposals, the EU may take a fresh look at PoW mining and other regulatory crackdowns. As can be seen, two senior leaders have expressed similar views. This might convince the EU to ban crypto activities.