In a recently-published annual report for 2015, the Dutch Central Bank (De Nederlandsche Bank) dedicated an entire section on blockchain and fintech innovations. The section titled Block Chain Technology Look Promising, explained that this innovation may hold the keys to cutting down transaction costs in the financial system.
The report highlighted the ability of blockchain-based payment system to speed up the settlement time of transactions, as well as improve transparency.
While the DNB recognized the benefits of blockchains and distributed ledgers, the report pointed to another recent publication by the Basel Committee on Payments and Market Infrastructures, which states that this new technology could have a “range of impacts on various aspects of financial markets and the wider economy.”
The Basel Committee also concluded that the adoption of distributed financial systems based on blockchain technology may include “potential disruption” to existing business models and systems”, which the DNB also acknowledged in their report:
“The block chain technology can affect the revenue models and banking systems, they can also benefit with new ways to generate revenue and reduce costs.”
DNB’s report also called for further study of the issues surrounding the regulation and governance of blockchain-based payments systems, and reiterated that the Dutch Central Bank has previously pointed out the “risks” associated with the usage of virtual currencies such as bitcoin.
“DNB has previously pointed out the risks of the use of virtual currency as bitcoins, but recognizes the opportunities of the block chain technology.“
At the end of the report, a small section describes a prototype cryptocoin called “DNBcoin”, which may mean that the DNB is looking into experimenting with its own digital currency.
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