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The\u00a0Dutch central bank<\/a>\u00a0wants to be the proving ground for central bank digital currencies (CBDCs) in the European Union.<\/p>\n In a 45-page\u00a0report<\/a>\u00a0released by the bank on April 21, the De Nederlandsche Bank (DNB) said it was \u201cready to play a leading role\u201d with research and development into its own digital currency as well as a Europe-wide digital currency.<\/p>\n A digital Euro is expected to make cross-border payments faster and cheaper for all member states who participate. The Netherlands would be a suitable testing ground, the report said.<\/p>\n Though not the primary target of the report, the DNB singled out cryptocurrency Libra as a possible threat to monetary stability and conceded it was \u201cthe reason why the DNB and other central banks are now considering issuing their own digital currency.\u201d<\/p>\n According to the report, the move is partly in response to the decreasing use of\u00a0paper money<\/a>\u00a0and coins in the Netherlands. Nearly two thirds of all payments in the nation are digital.<\/p>\n In developing a digital currency, the DNB report questions \u201cwhether central banks should provide a new type of money that is better attuned to the needs of citizens and firms.”<\/p>\n With the pandemic measures shutting down many businesses worldwide, the DNB report notes that those that remain open are avoiding physical cash:<\/p>\n \u201cMany stores now ask clients specifically not to pay in cash, which effectively means that only private money is accepted.\u201d<\/p>\n<\/blockquote>\n As the money we use becomes more risky \u2014 both physically due to the risk of passing on COVID-19 and financially due to an uncertain economic future \u2014 the\u00a0race for CBDCs<\/a>\u00a0is accelerating.<\/p>\n The People\u2019s Bank of China issued a\u00a0statement<\/a>\u00a0on April 4 saying that it will \u201cundoubtedly continue\u201d its CBDC development, calling a digital yuan one of its \u201ctop priorities.\u201d Both South Korea and Sweden launched\u00a0pilot programs<\/a>\u00a0to assess the feasibility of issuing a CBDC.<\/p>\n EU members like France have recently begun experimenting with a\u00a0digital euro<\/a>, with even the European Central Bank president\u00a0supporting<\/a>\u00a0the bank\u2019s involvement developing a CBDC. However, as the DNB report notes, any decision on a digital Euro would require cooperation between member states.<\/p>\n Source:\u00a0https:\/\/cointelegraph.com\/news\/dutch-central-bank-ready-to-play-a-leading-role-with-digital-euro<\/a><\/p>\n\nUse of physical currency declining<\/h2>\n
<\/h2>\nDigital solutions for pandemic<\/h2>\n
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Netherlands leading the CBDC charge<\/h2>\n