March 28, 2024

Netherlands ready to start testing CBDC and digital Euro

Netherlands ready to start testing CBDC and digital Euro

The Dutch Central Bank wants to be a testing ground for central bank digital currencies (CBDCs) inEuropean Union, Cointelegraph reports. This was announced in the bank’s latest report, published on Tuesday, entitled “Central Bank Digital Money. Goals, prerequisites and choice of form."

Holland is the perfect training ground for the national CBDC and digital euro

Central Bank of the Netherlands De NederlandscheBank (DNB) said in a 45-page report dated April 21 that it is “ready to play a leading role” in research and development in creating the national digital currency, as well as the unified European digital currency.

Digital Euro will make international payments faster and cheaper for all participating countries. The report said the Netherlands could be an ideal testing ground for testing the capabilities of digital currencies.

Netherlands ready to start testing CBDC and digital Euro

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The DNB report also mentions the notoriousLibra cryptocurrency as a possible threat to the stability of monetary policy. Bank experts admitted that Libra has become "the reason why DNB and other central banks are now considering issuing their own digital currency."

Also, according to the report, this step is partially explained by the reduced use of paper money and coins in the Netherlands. Almost two-thirds of all payments in the country are digital.

Netherlands ready to start testing CBDC and digital Euro

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Due to the fact that many companies around the world were closed due to the pandemic, the DNB report states that continuing operations avoid physical money:

"Many stores now ask customers not to pay in cash, which in fact means that only digital money is accepted."

Because the money that is commonly used isbecoming more risky - both physically, due to the risk of transferring COVID-19, and financially due to an uncertain economic future - the race for the introduction of CBDC is accelerating.

Recall that China, the leader in the development of CBDC in the world, announced the start of testing its own digital currency DCEP in May when paying benefits to employees in the city of Suzhou.

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