Germany and France have ordered a complete global ban on cryptocurrencies, including Bitcoin, in order to maintain long-term financial stability.
In a letter to G20 finance ministers – signed by French Finance Minister Bruno le Maire and his German counterpart Peter Altmaier – they said that Bitcoin poses a “substantial risk” to the world’s biggest banks.
Rt.com reports: “Given the fast increase in the capitalization of tokens and the emergence of new financial instruments” based on them, “these developments should be closely monitored,” the ministers said.
Cryptocurrencies “are currently largely mislabeled as ‘currencies’ in the media and on the internet,” they said, adding that a “lack of clarity” about the nature of tokens “can only fuel speculation.”
They also called for greater protections for retail investors speculating in crypto, saying “the buildup of individual exposures to such volatile tokens could have damaging consequences for misinformed investors who do not understand the risks they are exposing themselves to.”