Understanding the Perspective of the Dutch Central Bank

In a recent statement that stirred quite a few online debates, Petra Hielkema, the divisional director of the Dutch Central Bank, pointedly stated that cryptocurrencies are not seen as “real money”. Despite the glamor and hype surrounding digital currencies, Hielkema emphasized that the bank does not intend to impose a ban on them.

What’s in a Name? The Definition of Money

Hielkema elaborated on her stance, explaining that for something to be classified as money, it should meet three essential criteria: it must be spendable, savable, and calculable. So, if you’re using your bitcoin to buy that hot new gadget, don’t be surprised if it doesn’t quite meet the criteria in the eyes of the financial giants.

Blockchain: The Chosen One?

Now, don’t think the Dutch Central Bank is going all the way into the digital dark side. They’ve been dabbling in blockchain technology for about three years and have successfully developed four prototypes. But before you get too excited about a future filled with seamless blockchain transactions, Hielkema reminded everyone that the technology isn’t ready for prime time just yet.

Concerns Over Cryptocurrency Risks

Earlier this summer, the Netherlands Authority for the Financial Markets also raised eyebrows by expressing serious concerns regarding the management of crypto assets. According to their assessment, the risks associated with crypto are significant, which should make anyone pause before investing their lunch money.

What Do Other Countries Think?

The skepticism surrounding cryptocurrencies isn’t unique to the Netherlands. For instance, a recent paper from the Bank of Finland dismissed the idea of digital currency being considered as “real money,” categorizing it instead as a “fallacy.” If this isn’t a vote of no confidence, what is?