Dutch Central Bank Supports Blockchain, Not Cryptocurrencies

De Nederlandsche Bank (DNB) has declared cryptocurrencies aren’t real money. However, it won’t stop its citizens from using it.

Bank’s Director Says You Cannot Save Cryptocurrencies

Petra Hielkema, the bank divisional director, explained in a bank publication on financial technology (fintech), how cryptocurrencies could not be compared to fiat currencies, what the world considers to be ‘real money.’

She said, ‘If something wants to be treated as money, you have to be able to spend, save and calculate with it. However, things are not often bought with cryptocurrencies, it is too volatile for savings, and its value is expressed in real money. So we do not consider it to be money as such.’

The Dutch finance minister, Wopke Hoekstra, has a similar approach to cryptocurrencies. Earlier this year, he said, ‘Investing in cryptocurrencies is not without risk. In contrast to savings, money put into cryptocurrencies does not fall under a deposit guarantee system, and there is generally no central issuer to claim from in the event of abuse.’

Hielkema also stated people are taking significant risks when they decide to get involved with cryptocurrencies. Nonetheless, the Dutch central bank has no intention of banning citizens from using them.

The Dutch Central Bank Wants To Use Blockchain But Can’t

Like many other institutions and nations, the DNB recognizes the potential of the technology underneath Bitcoin, the blockchain. The bank has reportedly been working and experimenting with blockchain technology over the past three years.

Hielkema revealed the bank developed four prototypes as a result of their research, but their findings concluded the Dutch payment system could not implement the new systems. Nevertheless, the director remains optimistic about future opportunities in which they will successfully implement blockchain technology.

Dutchmen Are Backing Cryptocurrencies At Full Speed

A local news report, the Dutch News, stated half a million Dutch households hold, invest, or trade in cryptocurrencies. According to a study by Statista, there are roughly 7.8 million households in the Netherlands — meaning 6.4% of the nation’s population deals with cryptocurrencies. While it might not be an impressive percentage, this number is rising daily.

The country’s finance minister also said he wants to reach an agreement with credit card companies — he proposes companies should warn their customers against purchasing cryptocurrencies using credit cards.

Remember folks, Crypto is comin!

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