“Ban Crypto Trading and Mining”, Says Hungary Central Bank’s Governor

Cryptocurrencies are still a developing world regardless of their adoption. Many people still do not completely understand the nitty gritty of its actual purpose and only look at the surface to form their opinion. 

While one person’s understanding is based on their own reasoning, when people in power make a definitive statement it most usually bears a ripple effect on a much larger scale.

Hungarian Governor Says No to Crypto

In a publication from the Governer, the Magyar Nemzeti Bank, the 98 years old national bank of Hungary stated that the Governor of the bank György Matolcsy is in absolute defiance of cryptocurrencies and mining.

The statement came out after Russia’s central bank proposed a ban on crypto trading and mining recently.

The governor said that he completely agreed with the ban proposal and was also in support of the senior EU financial regulator’s point that the European Union should look into banning the mining methods currently in use to mine Bitcoin.

He further added:

“It is clear-cut that cryptocurrencies could service illegal activities and tend to build up financial pyramids. Russia’s central bank is right saying that “the breakneck growth and market value of cryptocurrencies is defined primarily by speculative demand for future growth, which creates bubbles.”

While a lot of people are not in support of cryptocurrencies, Matolcsy’s statements were relatively more hostile towards crypto in general.

The governor suggested that the European Union should unitedly prevent the widespread adoption of cryptocurrencies and stop the formation of “new financial pyramids and financial bubbles.”

However, he did not have a problem with citizens holding cryptocurrencies as he added that EU citizens, as well as companies, would be allowed to own digital assets abroad which could be tracked by regulators.

Who Else Wants a Crypto Ban?

Russia’s stance on cryptocurrency has been rather concerning with the proposed ban on trading and mining but at the same time, President Vladimir Putin’s suggestion of not banning mining played in favour of the Russian miners. 

However, to keep this mining in check, the Ministry of Finance recently announced its intentions of taxing crypto mining after its conversion into Rubles.

On the other hand, India too hasn’t given a clear stance on whether or not cryptocurrencies have a future in the country.

But the Deputy Governor of the central bank, the Reserve Bank of India (RBI) called for a ban on cryptocurrency suggesting that it is “is perhaps the most advisable choice open to India”. 

Among other cited reasons was the possibility of cryptocurrencies turning into a social movement to liberate individuals from the established financial and governmental system.

While the only existing regulation is a 30% crypto tax and 1% TDS on crypto transactions, RBI’s plans of issuing their CBDCs could be followed by a final decision on cryptocurrencies in the country.