The Governor of the Hungarian National Bank proposes EU-wide crypto ban

Hungary, which is considered a crypto-friendly nation, witnessed a heavily negative comment on crypto. The Governor of the Hungarian National Bank, György Matolcsy, has advocated a European Union-wide ban on cryptocurrency trading and mining operations.

Matolcsy cited China and Russia as examples

In a blog post titled “Time has come to ban crypto trading and mining in the EU” published by the central bank of Hungary, Magyar Nemzeti Bank (MNB), Matolcsy referenced China’s last-year crypto ban.

He also mentioned the Russian central bank’s plan, which calls for a complete ban on cryptocurrency trade and mining within Russia. Matolcsy reacted to the proposals for a crypto ban by saying that he fully supports the notion, as well as the suggestion made by a senior EU financial regulator that the EU ban the mining techniques used to create the most of new bitcoin.

Matolcsy is certain that cryptocurrencies might be used to “service illegal activities and tend to build financial pyramids.” He also mentioned the Russian central bank’s concern that the market value of cryptocurrency is decided by “speculative demand for future growth, which creates bubbles.”

Europe’s crypto progress

Europe, which according to Chainalysis, emerged as the biggest crypto-economy, has seen several ups and downs when it comes to crypto. Recently, the European Commission revealed its plans on bringing the CBDC proposal in early 2023, and if it gets approved, one can see the digital euro exchanging wallets in 2025.

Governor Matolcsy concludes by calling for an outright blanket ban on crypto to protect investors from financial pyramids and bubbles:

“EU citizens and companies would be allowed to own cryptocurrencies abroad, and regulators will track their holdings.”

Notably, the cited country Russia now seems stable with a recent agreement between the government and central bank on classifying cryptocurrencies as an “analogue of currencies” and regulating digital assets.

In September 2021, Graphisoft Park in Budapest, Hungary, presented a bronze statue of famed Bitcoin (BTC) inventor Satoshi Nakamoto. The sculpture depicts the upper half of a body wearing a sweatshirt with the BTC logo and a featureless face.