Bitcoin and other cryptocurrencies are not considered money by the Dutch Central Bank, though there are no plans to impose a ban on them while consumer protection remains the main concern of the government.
Dutch central bank doesn’t consider cryptos as money
According to the local Dutch media channel, the Dutch central bank, De Nederlandsche Bank (DNB) doesn’t consider cryptocurrencies to be money. Cryptos rather possess a major risk to the buyers. However, it doesn’t mean that the bank will ban them as they have no plan of imposing a ban on bitcoin among other cryptocurrencies.
Petra Hielkema, the Division Director Payments and Market Infrastructure at the Dutch Central Bank stated:
“If something wants to be treated as money, you have to be able to spend, save and calculate with it.”
But due to high volatility inherent in the crypto market, bitcoin and others are often not used to pay for goods or services or for saving in real life. The local publication also mentions that “its value is expressed in real money”. “So we do not consider it to be money as such” comments Hielkema.
However, just like other countries that are not interested in Bitcoin but are completely onboard with blockchain technology, the Dutch central bank also finds blockchain “extremely interesting” as well.
“We have been experimenting with the technology for the past three years and have developed four prototypes.”
Consumer protection remains the main concern
In early June, the bank has released a statement that they have been testing with Blockchain and though it is promising, it is not efficient enough to support the financial system at least not yet. Hielkema also stated that the experiments have shown blockchain cannot be incorporated into the Dutch payment system as of yet. However, there are “possibilities for in the future, with more innovation,” she further commented.
The publication also revealed that according to a recent research “half a million Dutch households now own cryptocurrencies”. There is no plan to ban the bitcoin or any other cryptocurrencies by the central bank but they sure are concerned about the risk involved in the market.
Wopke Hoekstra, Dutch finance minister earlier this year said that there needs to be a European as well as the international approach to fighting these risks.
Among Hoekstra’s proposed measures, a ban on advertisements for risky financial products that target general consumers and to approach credit card companies so that they warn consumers of the risk involved in buying cryptos on credit are included.
Dutch finance minister also wants extra attention on improving the transparency around crypto trading through anti-money laundering legislation.