The governor of the Hungarian Central Bank, György Matolcsy, has called for a ban on cryptocurrency activity in the EU. All crypto operations, including trading and mining, should be forbidden in European countries, according to Matolcsy.
Governor Matolcsy comments that his new point of view is in line with many other states in a report published on the Magyar Nemzeti Bank’s website. Matolcsy cites the Russian Central Bank and Erik Thedéen, Vice-Chair of the European Securities and Markets Authority (ESMA), as supporters of Proof-of-Work (PoW) prohibition. Matolcsy also remarked that he agrees with the EU financial regulator’s position on cryptocurrency mining. He does, however, mention the dangers of using cryptocurrency. According to the governor, cryptocurrency could lead to criminal activities such as the formation of financial pyramids.
The chairman of the Hungarian Central Bank, on the other hand, refers to what the Russian Central Bank said regarding the cryptocurrency industry. According to the Russian bank, the rapid increase and market value of cryptocurrencies are characterized by dangerous demand for future growth. As a result, this road is fraught with risk.
Global Concerns surrounding the Crypto Ban
As a result, governments worldwide are concerned about the likelihood of criminals exploiting cryptocurrency. Several states have taken attempts to restrain their expansion in this regard. As the Hungarian leader urged, Governor Matolcsy points out that the ESMA board of directors does not want to outright ban cryptocurrencies. However, there is universal agreement that the introduction of PoW mining should be slowed. Such a procedure consumes a lot of energy because it requires sophisticated computers to run 24 hours a day, seven days a week.
EU residents and corporations will buy cryptocurrency, according to Governor Matolcsy, while authorities will keep track of their holdings (HODLing). As a result of this approach, new financial pyramids and bubbles have been avoided. The Hungarian Central Bank’s effect on the EU may be less than that of regional governments. However, due to the suggestions, the EU may rethink PoW mining and other regulatory measures. Two top leaders have stated identical opinions, as can be seen. This could persuade the EU to prohibit crypto activity.