The director of ‘Association of Stockholders in The Netherlands’ Paul Koster wants a ban on Bitcoin as he says that he can’t understand why a newly-developed financial system outside of the current legal financial model is legitimate. According to him, he does understand technology is advancing at an accelerated pace; however, he strongly warns central bankers.
Paul Koster believes that the central banks should be wary and reluctant about getting involved in “other” financial systems. He suggests that they would be better if they prohibited Bitcoin immediately. The demand has though not surprised many as such demands have been coming at various occasions from various government bodies in the European Union.
However, as this time the voice for a ban has come from someone who is responsible for stockholders may have great impact on the policies that the government designs. Nonetheless, Koster has traditionally been against Bitcoin; the latest stance on the digital currency is not surprising at all. It is just an extrapolation of what he believes in.
A lot of voices coming against Bitcoin have to do with the falling value of the digital currency. Bitcoin’s value has fallen from $1200 in October 2013 to below $300. In fact, some publications call it the worst investment of 2014 as most of the investors lost their investments. A significant fall in value raises uncertainty about the digital currency.
Koster is not alone in his belief that these volatile Bitcoin price swings prove that this market is not supervised and/or regulated by any government or institution. According to him as a result, it is impossible for banks, consumers, investors and retailers to estimate the potential risks of getting involved with Bitcoin.
Despite the Falling Value, Bitcoin Receiving Acceptance among Businesses
However, interestingly, Bitcoin has received a lot of popularity over the months as many new businesses and ecommerce websites have started to accept it as payment. Overstock was one of the biggest online retail companies that accept Bitcoin for payment from customers. Similarly, some other organizations like Microsoft are moving towards the same goal.
Whereas a lot of private organizations are willing to embrace Bitcoin, governments around the world are scared of its disruptive nature. Similarly, banks are afraid of the impact it will have on their own financial growth as according to them if it takes off as an actual legitimate currency, the consequences for the current financial and economical infrastructure would be massive.
To contact the reporter of this story: Deepak Tiwari at email@example.com