The head of the Hungarian central monetary authority spoke out in favor of the anti-crypto stance of countries like China and Russia. He believes that the EU should take a similar approach.
The Governor of the Central Bank of Hungary urged European Union (EU) to apply prohibitions on activities related to Bitcoin and other digital currencies.
The leader of the entity, György Matolcsy, revealed a statement highlighting that he firmly supports the ban on cryptocurrency trading and mining in the European Union. The representative explained that this asset could get exploited to carry out criminal activities, including financial fraud.
The representative mentioned the Chinese government and its stance on making all digital asset transactions illegal. He also talked about the Russian central bank and the recent proposal to implement similar procedures. Matolcsy stated he supported these strategies and asked the EU to lift a prohibitive policy.
Matolcsy Agrees with China Stance about Crypto
Matolcsy added that he agreed with the Russian Monetary Authority when it argued that the breakneck growth and market value of cryptocurrencies get defined by speculative demand for future growth, which generates bubbles.
According to the official, cryptocurrencies could become a tool to boost illegal activities and develop financial pyramids. He said America must prevent new financial pyramids that could harm the economy and the financial health of its citizens.
On the other hand, the Russian central bank recently changed its stance to support the regulation of cryptocurrencies instead of pursuing a complete prohibition set.
In any case, the governor does not seem to expect the European Union to apply an extended ban for all nations in the alliance. Matolcsy, instead, proposed strong regulation at the local level while Europe tracks the sector more closely.
The official said EU citizens and companies would hold cryptocurrencies abroad, and their holdings would enter into regulators monitor to keep them on track.
The remarks by the head of Hungary’s central bank arrived the same week the European Commission revealed its intentions to move towards supportive legislation for digital currencies in 2023.
The ECB is already carrying out internal experiments to create a digital euro, so they to start working with a prototype in public by the end of 2023.
The final move will remain in the hands of the governments of the Eurozone, which will declare if it will be worthwhile to mint a cryptocurrency supported by the financial institution. If an agreement gets reached, the Eurozone could start using said currency by 2025.
The Legislative Path
According to many analysts, if the legislative calendar contemplated for the European CBDC gets fulfilled within expectations, the bill will have to go through debates and analysis within the EU capitals and parliaments before it becomes law.
As such, a public consultation by the EU executive wing got scheduled to happen in March, and it would focus on how the digital euro can serve different sectors.
By: Jenson Nuñez
