Central Bank of Netherlands: you can buy goods for cryptocurrencies, but they are still not money

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Central Bank of Netherlands: you can buy goods for cryptocurrencies, but they are still not money
Central Bank of Netherlands: you can buy goods for cryptocurrencies, but they are still not money

The regulator, criticizing cryptos, does not intend to impose a ban on them.

The central bank of the Netherlands, De Nederlandsche Bank (DNB), criticized cryptocurrencies, refusing to recognize their right to be a modern form of money. As Peter Hielekema, the divisional director of the regulator, said, “if an asset wants to claim to be the same as money, then people should be able to spend this asset, save it, and also reflect the cost of goods and services in it. However, the goods are not so often purchased for cryptocurrencies, they are changing their price so that they cannot be used for savings. In addition, the price of goods is still expressed in ordinary money. Proceeding from this, we come to the conclusion that cryptocurrencies cannot be considered as money. ”

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Despite the strict criticism from DNB, it is noteworthy that the regulator recognizes that it is possible to purchase goods for cryptocurrencies, and such transactions do occur, although their number and scale, from the point of view of the regulator, are not so significant. In addition, the DNB said that they do not intend to impose a ban on cryptocurrencies, although Finance Minister Vopke Høkstra advocates the ban on advertising “risky financial products.” However, he proposes to introduce it only when a corresponding unified line is developed with respect to cryptocurrency at the international level. It is worth noting that in the Netherlands there is a growing interest in cryptos, and currently about half a million families in the country own cryptos.

The Ministry of Finance and the Central Bank of the Netherlands also acknowledge that part of the purchases of cryptocurrency are made using bank cards issued by local banks and intend to recommend that credit institutions notify their customers about the risks associated with investing in too volatile assets.

The central bank of the Netherlands, for all the criticism of the cryptocurrency, appreciates the blockchain, the technology that underlies most of them. DNB, as noted in the latest report of the regulator, is conducting test work with the blockchain over the past three years, and has also developed four experimental blockchains. Despite the fact that the tests showed that these blockchains cannot become an integral part of the Dutch payment system, nevertheless, DNB believes that “there are opportunities for using distributed registry technology in the future, if further innovations improve it.”