Netherlands is Bitcoin-friendly but its central bank says cryptocurrency not real money 20240
News
Vidwan Reddy
Aug 3, 2018 at 6:00 PM

The Netherlands is one of the most Bitcoin-friendly countries in the world but its central bank, De Nederlandsche Bank (DNB), doesn't consider cryptocurrencies are real money. However, the Dutch central bank is not planning to impose a ban on them.

"If something wants to be treated as money, you have to be able to spend, save and calculate with it," Petra Hielkema, divisional director of the bank, said in its fintech publication, according to a Dutch News report. According to her, people don't often purchase things using cryptocurrencies and they are volatile for savings. The value of these currencies are expressed in real money, she added.

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"So we do not consider it to be money as such," Hielkema was quoted as saying by Dutch News. The central bank also doesn't find the Blockchain technology, the base for bitcoin and its likes, extremely interesting.

"We have been experimenting with the technology for the past three years and have developed four prototypes," Hielkema pointed. Though she stated that the systems cannot be synchronized with the Dutch payment system, she was optimistic about the possibilities in the future with further innovation.

Earlier, Dutch Finance Minister Wopke Hoekstra called for a European and international approach to battle the risks linked with the cryptocurrencies. He is considering a ban on advertisements that target ordinary consumers with such high-risk financial products. He also wants credit card companies to caution customers about the risk of buying crypto.

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On the flipside, the Dutch love crypto

Cryptocurrencies are not regulated by the financial authorities of Netherlands but the European nation is one of the world's crypto hubs. It is also one of the most Bitcoin-friendly countries in the world. Indeed, they have a Bitcoin city, Arnhem, where you can buy almost everything with the first generation cryptocurrency.

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