Dutch Central Bank Set to Pioneer CBDC Development for European Union

The Dutch Central Bank has revealed its intentions to lead the way in the European Union, with central bank digital currencies (CBDCs). In a new report, the bank says that it is willing to pioneer proper research and development into CBDCs.

The report from De Nederlandsche Bank (DNB) touches on its own CBDC and a digital currency that could be used across Europe. The DNB hopes that a digital Euro would make payments a lot easier and more cost-effective. Cross-border payments among interested countries would also be faster and cheaper.

The report says that the DNB feels this move is necessary, partly because there is a recorded reduction in the use of physical money in the Netherlands. This organic reduction in fiat money’s relevance and use, forms a good enough bedrock for its CBDC.

The DNB also mentions the Libra in the report. According to the central bank, the Libra is a sure threat to monetary stability and sovereignty for many central banks. While it didn’t exactly say the Libra is one of the major reasons for this decision, it says the Libra might by why central banks around the world are considering their CBDC.

For these reasons, the DNB says it is “ready to play a leading role” with developing a CBDC.

The DNB has been working on this for a while, so much that last year, the central bank of Rwanda said it was studying the DNB’s research to develop its own CBDC.