Germany and France have ordered a complete global ban on cryptocurrencies, including Bitcoin, in order to maintain long-term financial stability.
In a letter to G20 finance ministers – signed by French Finance Minister Bruno le Maire and his German counterpart Peter Altmaier – they said that Bitcoin poses a “substantial risk” to the world’s biggest banks.
Rt.com reports: “Given the fast increase in the capitalization of tokens and the emergence of new financial instruments” based on them, “these developments should be closely monitored,” the ministers said.
BYPASS THE CENSORS
Sign up to get unfiltered news delivered straight to your inbox.
You can unsubscribe any time. By subscribing you agree to our Terms of Use
Cryptocurrencies “are currently largely mislabeled as ‘currencies’ in the media and on the internet,” they said, adding that a “lack of clarity” about the nature of tokens “can only fuel speculation.”
They also called for greater protections for retail investors speculating in crypto, saying “the buildup of individual exposures to such volatile tokens could have damaging consequences for misinformed investors who do not understand the risks they are exposing themselves to.”
This week, warnings have been voiced by regulators and watchdogs from the Bank for International Settlements (BIS), the European Central Bank (ECB), and Hong Kong’s Securities and Futures Commission.
ECB board member Yves Mersch said on Thursday that “cryptocurrencies” are “not money, nor will they be for the foreseeable future.”
Bitcoin is “a combination of a bubble, a Ponzi scheme and an environmental disaster,” Agustin Carstens, the head of the BIS, said.
He called on central banks to clamp down on bitcoin and other cryptocurrencies to stop them “piggybacking” on mainstream institutions and becoming a “threat to financial stability.”
Sean Adl-Tabatabai
Headline ‘ban bitcoin’ that looks like good news “talks to central banks” dammit. This is just to drive people to digital currency.
Roths’s stooges at work.
I never paid any attention to cryptocurrency nonsense. We live in a world that is a game, and you have to play that game the right way. The game has a currency, and I use that currency — not some stoned libertarian’s currency. The game gives me credit so I make some money for spending my money, I do that. I don’t have time for more games inside an already confusing and arduous game.