Dutch Central Bank to Issue Digital Currency DNBcoin

Following the UK, the Dutch Central Bank is also going to develop its own version of Bitcoin! The digital currency to be developed by the Dutch Central Bank (De Nederlandsche Bank, DNB) is called DNBcoin. The digital currency should be based on block chain technology, similar to the technology used by Bitcoin itself.

The news was announced in the annual report of the Dutch Central Bank. The Dutch Central Bank stated that their goal is to develop DNBcoin. However, the Dutch Central Bank will not use it to replace the euro currency or become a substitute for Bitcoin. The main purpose of the Dutch Central Bank is to further understand the blockchain technology, so it is hoped that it can be used to illustrate the future development of this technology and whether it can be used to save time and operating costs in the financial world.

Just like Bitcoin, which also uses blockchain technology, all its transactions will be recorded in multiple decentralized systems. Since these account transaction information is not stored in the same place, it becomes very difficult to defraud Bitcoin, and the security of transactions is also guaranteed.

In fact, the Dutch Central Bank DNB is not the first central bank to want to develop its own version of digital currency. For example, the Bank of England also began researching its version of digital currency, called RSCoin, earlier this year.

Blockchain technology will transform the banking system

The Dutch Central Bank believes that blockchain technology may have an impact on the existing income model of banks and the banking supervision system. In addition, DNB also believes that through this new (digital currency exchange) method, it will be possible to create new benefits for banks to realize income and may also reduce costs. According to a DNB spokesperson, this blockchain technology may also have an impact on the financial supervision capabilities of the Dutch Central Bank.

The Dutch Central Bank has previously pointed out the risks of using Bitcoin, but the bank also said that they see new opportunities (and new technologies). However, DNB believes that central banks still need to maintain financial management means and methods, so the financial governance and risk management issues that may be brought about by the decentralization of blockchain technology should be further explored, and possible technical adjustments should be developed.