The reserve bank of the Netherlands, De Nederlandsche Bank, recently revealed that it’s planning to play a key role in the ongoing development of central bank digital currencies (CBDCs).
As mentioned in a notice published on April 21, 2020, the Dutch central bank said that cash transactions were declining in the country, which suggests that the nation’s residents are increasingly using digital payment methods.
The bank noted:
“A question that naturally springs to mind is whether central banks should provide a new type of money that is better attuned to the needs of citizens and firms.”
The central bank argued that a CBDC might “promote diversity in the payments market.” It may also make international transactions more efficient, the bank said. Additionally, CBDCs could “foster trust in the monetary system in times of uncertainty.”
The ability to exchange commercial bank money for reserve bank money is important, because it helps build and maintain trust that a country’s citizens have in the monetary system, the bank stated. While there may be potential risks, the bank said it has “a positive attitude” toward digital currencies.
The Dutch reserve bank noted that it’s prepared to help the European Central Bank with testing CBDCs. It’s also ready to play “a leading role.”
The People’s Bank of China has been working on a virtual currency project. The bank introduced a testing app that was tied to the development of a digital currency.
The Libra Association, which focuses on the ongoing development of the Facebook-led stablecoin project, recently suggested that it would be interested in working with central banks as they plan to launch CBDCs.