Netherland’s Apex Bank is Interested in Leading the Development of a Digital Euro

News / 22.04.2020

The Dutch central bank claims readiness for the development and trial of a digital Euro. According to the apex bank, it is willing to lead the development of a Europe-wide digital currency.

On April 21, the central bank released a 45-page report which stated its readiness to lead the research and development of a digital currency for the Netherlands and Europe.

The report also stated that the central bank is interested in becoming a proving ground for central bank digital currencies in the European Union.

The potential benefit of a centralized digital Euro is faster and cheaper cross-border payments for the participating member states.

The report noted the suitability of the Netherlands in becoming the testing ground for central bank digital currencies and digital euro. Likewise, when it comes to the likely threat to monetary stability, the report mentioned Facebook’s Libra as the only one. This is why the central bank and other central banks are looking into the issuance of their own digital currency, the report stated.

The current pandemic has promoted fear in terms of spending physical money. This is why people are hesitating to use it. Hence, the number of people using digital payment methods for everyday transactions has increased since the emergence of COVD-19 pandemic.

According to the report, the stores in operation during the lockdown are avoiding physical cash. That is, the stores are asking customers to not make payments using physical cash. So far, the apex bank of China has said it will keep developing its CBDC without doubts.

Other countries are also looking into the development of a CBDC. For instance, South Korea and Sweden now have pilot programs towards the assessment of the practicability of issuing a centralized digital currency.

In recent times, some EU members started experimenting with a digital euro. The European Central Bank president is likewise in support of the bank’s involvement in the development of a CBDC.

Nevertheless, the apex bank of the Netherlands stated that the member states need to cooperate to decide on a digital Euro.

Featured image courtesy of Shutterstock. Source: Cryptopress.

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Sudarshan M is a long time crypto-enthusiast. Pulled in by bitcoin early on, it did not take long for Sudarshan to divert all of his academic attention from business studies to blockchain by doing his Masters and eventually pursuing his PhD in the subject.