The Netherlands Bureau for Economic Policy Analysis (CPB) has recently released an economic risk report, wherein they claim cryptocurrencies actually present a low risk to financial stability in the country.
The CPB report says that as of now, cryptocurrencies pose a low risk to the financial system due to the low level of capitalization, and limited involvement of traditional financial institutions and systems. The CPB noted the issues associated with usage in crime financing, fraud, energy consumption of mining and market volatility separately.
Their report predicts that risk will increase with increased interaction with government financial institutions. The CPB also said that crypto is not a money substitute, claiming in its report that users generally prefer to hold on to their crypto rather than use it as an everyday payment method.
The report stresses the need for balanced financial regulation, comparing the risks of too little regulation equally with overly stringent regulations, saying harsh measures can increase activity from “shadow banks”.
The CPB has been providing financial risk reports at the request of the Parliamentary Committee of Inquiry on Financial Assistance every year since 2012. The CPB also went on to claim in their report that the most important financial risks currently are low-interest rates and the involved risks of reducing the sustainability of debts on a macroeconomic level.
This year, a Dutch court recognized Bitcoin as a transferable value, arguing that the cryptocurrency showed characteristics of a property right. In the lawsuit, the court ordered the defendant to pay a debt using the same cryptocurrency. The court reasoned that, since the obligation to pay of the defendant was originally in Bitcoin, the amount should also be paid in the same cryptocurrency.