Summary:
- CoinShares’ Chief Strategy Officer has warned that governments are going to try to ban Bitcoin and other cryptocurrencies
- Evidence of such attempts can be seen in the EU’s sentiment against Proof-of-work networks
- The same applies to the US State of New York, which has a pending bill focusing on the energy consumption of such networks
- Pakistan is also considering whether to ban crypto or formulate a regulatory framework
- The Central Bank of Argentina has prohibited lenders from offering crypto-related services
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 EU Had Attempted to Ban Proof-of-Work Networks
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.
🇪🇺@FrankElderson: Crypto-assets such as #bitcoin have an enormous ecological footprint. Their estimated energy consumption is comparable to that of some countries. Authorities across the world need to see how this affects their sustainable finance roadmaps and take action #AskECB https://t.co/cWcC9nBMRS
— European Central Bank (@ecb) May 6, 2022
New York State is Also Considering Banning Proof-of-Work Networks
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.
Pakistan is Considering Banning Bitcoin and Crypto
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.
Argentina’s Central Bank Bans Banks from Offering Crypto Services
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.
