DUTCH CENTRAL BANK WANTS TO BE LEADER IN DIGITISATION
According to recent statements, the Netherlands wants to play a leading role in the CBDC in particular.
The Dutch central bank, De Nederlandsche Bank, has expressed that the central bank wants to become a world leader in the development of digital currencies.
Reduced Use Of Cash
In a bulletin published on Tuesday, the bank said physical cash use was “clearly” declining in the Netherlands, meaning people are increasingly using less central bank-issued money to buy things. ”A question that naturally comes to mind is whether central banks will provide a new type of money that will better adapt to the needs of citizens and firms, " the bank said in a statement., ” he said.
The bank said a central bank digital currency (CBDC) could “encourage diversity in the payment market” as well as making cross-border payments more efficient. Perhaps more importantly, it could help “boost confidence in the monetary system during times of uncertainty,” according to the bank.
Besides these statements, it is important to protect the freedom to exchange commercial bank money for the central bank's digital currency. This is because it helps people maintain basic confidence in the monetary system. Therefore, despite the potential risks, the bank says it has taken a “positive attitude” towards CBDCs.
The Dutch central bank said that if the European Central Bank wanted to try such a system, they could take the lead role.
Other CBDC initiatives
Other central banks around the world, including the people's Bank of China, place great emphasis on such projects and conduct studies. As The Block reported earlier this month, China's central bank has launched a testing process on the central bank's digital currency, saying the currency will be partially tested publicly.
What's more, the recent change of conditions by the Libra Union, which oversaw the development of the Facebook-backed stablecoin initiative, strongly demonstrated that it was hoping for meddling from the world's central banks to launch digital currencies.