Dutch central bank in digital currency plan

Dutch central bank in digital currency plan

The Netherlands' central bank, De Nederlandsche bank (DNB) could be planning to develop its own digital currency based on blockchain technology.

Contained in its annual report, under the heading "Aims for 2016" is a project dubbed DNBCoin which is described as "a prototype coin based on blockchain technology".

Although there are no further details on the project's timeline or objectives, the report does routinely refer to the potential benefits of blockchain technology for banks, citing new ways to grow revenue and reduce costs.

The DNB is not the only central bank to experiment with digital currencies. In February both the People's Bank of China and the Reserve Bank of Australia referred to the possibility of developing digital versions of existing currencies. And in the same month the Bank of England announced details of its partnership with researchers from University College in London to develop RSCoin, a digital currency designed for central bankers.

Comments: (3)

Tom Hay
Tom Hay - Icon Solutions Ltd - London 30 March, 2016, 09:29Be the first to give this comment the thumbs up 0 likes

This could solve some of the problems associated with deferred net settlement for the forthcoming Dutch Instant Payments scheme. Blockchain settlement of interbank obligations using Central Bank Digital Currency provides a much more elegant solution than a central settlement agent with restricted operating hours.

A Finextra member
A Finextra member 15 April, 2016, 09:06Be the first to give this comment the thumbs up 0 likes

This development is a very significant step towards cheaper, quicker, and more verifiable transactions. It is also one where national digital currencies will finally make their appearance throughout the world taking the best features that the blockchain can deliver. One can't be but more chuffed that a less cash society is but a hop, step and jump away.

A Finextra member
A Finextra member 31 January, 2017, 13:39Be the first to give this comment the thumbs up 0 likes

The benefits of Blockchain following various tests in no doubt will outweigh any disadvange if there are going to be. Better move fast now or be swalloed by the 'hidden startups' who are maturing per day in IoT.

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