Dutch Central Bank Says Cryptocurrencies Aren’t Real Money

A report from local news outlet Dutch News published today, August 3rd, features new statements by representatives of the country’s central bank claiming that cryptocurrencies are neither real money nor a safe investment for the country’s citizens. The article quotes a recent interview with bank divisional director Petra Hielkema who cites her reasons for not considering cryptocurrency capable of serving a similar role to fiat.

“If something wants to be treated as money, you have to be able to spend, save and calculate with it,” said Hielkima.

Hielkima argues that because cryptocurrencies are highly volatile, rarely used for commercial transactions and have a value calculated by fiat that, “We do not consider it to be money as such.”

Hielkema has assured readers that the central bank has no plans to impose a ban on cryptocurrencies, despite its concerns surrounding them. She also stated that the central bank has taken great interest in the blockchain technology behind cryptocurrencies—an increasingly common trend among government and financial institutions worldwide.

“We have been experimenting with the technology for the past three years and have developed four prototypes,” said Hielkema, who thinks the central bank is still a long time away from incorporating blockchain into its payment systems. Nevertheless Hielkema believes blockchain presents promising “possibilities for in the future, with more innovation.”

According to Dutch News, recent reports show that half a million Dutch households now own cryptocurrencies. The growing European cryptocurrency market has led some government officials like Dutch finance minister Wopke Hoekstra to call for a joint international effort to protect citizens from the risks surrounding crypto. Among other things, Hoekstra wants to ban risky cryptocurrency projects from being able to advertise to ordinary citizens, bulk up anti-money laundering legislation, and require credit card companies to warn consumers about the risks of buying cryptocurrency on credit.

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