Summary:
The Chief Strategy Officer at CoinShares, Meltem Demirors, has warned that governments across the globe will attempt to ban Bitcoin and other cryptocurrencies. Mr. Demirors shared his insights on the future of Bitcoin and cryptocurrencies during the recently concluded Crypto Bahamas conference, where he said
the following:What we’re seeing around the world, which is really concerning to me, is using the attack on proof-of-work, and in particular, bitcoin’s energy usage, as a way to implement a de facto ban on bitcoin without saying it.
I’m gonna say the quiet part out loud. Governments are going to try to ban bitcoin, they’re going to try to attack bitcoin because it’s really difficult to do otherwise.
The possible trend of governments attempting to ban Bitcoin and cryptocurrencies has been evident for the last few months, starting with the European Union.
In mid-March, the EU Committee on Economic and Monetary Affairs voted on a bill that wanted to ban proof-of-work networks such as Bitcoin. However, at the last minute, the committee voted against the proposal.
Furthermore, on the 7th of May, the European Central Bank tweeted that crypto-assets had an enormous environmental footprint, and authorities worldwide needed to evaluate their impacts on their financial roadmaps.
Another example of legislators proposing a ban on proof-of-work networks can be seen in two pending bills at the New York State Senate and Assembly. The bills are geared toward banning energy-intensive proof-of-work networks.
At the same time, the Central Bank of Pakistan has proposed a ban on digital assets, with the country’s government forming three committees to establish whether to formulate a legal framework for cryptocurrencies or ban them altogether.
A similar scenario unfolds in Argentina, where its Central Bank has banned lenders from offering crypto services. The ban is part of IMF’s conditions for restructuring the country’s $45 billion debt. The official announcement from the Argentinian Central Bank said:
Financial entities may not carry out or facilitate their clients to carry out operations with digital assets, including crypto assets and those whose yields are determined based on the variations that they register, that are not regulated by national authority and authorized by the Bank.
The measure ordered by the Board of Directors of the BCRA seeks to mitigate the risks associated with operations with these assets that could be generated for users of financial services and for the financial system as a whole.