Matolcsy, the Hungarian central bank, has backed a ban on crypto trading and mining in the European Union. The Central Bank of Hungary is not backing the idea that cryptocurrencies are an investment and not a currency.
They believe that digital currencies are not yet stable enough to function at a large scale. With this decision, Matolcsy is hoping that the government will take action against cryptocurrencies in order to protect consumers from potential risks. This could keep some people away from investing in risky currencies.
Hungary’s National Bank governor, György Matolcsy, endorsed a ban on cryptocurrency trading and mining in the European Union in an article posted on its website on Friday, according to a report by state news wire MTI.
Matolcsy commented on a Financial Times article about Russia’s central bank’s proposal to ban crypto trading and mining, saying that he “perfectly approves of the proposal”.
In addition, Matolcsy backed the EU’s proposal to ban the mining method used to create most new bitcoin. “It is clear that cryptocurrencies could be used for illegal activities and tend to build up financial pyramids,” he said.
According to him, the EU should work together to prevent the development of new financial pyramids and financial bubbles. EU citizens and companies could own cryptocurrencies abroad, and regulators would monitor their holdings.
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