The Netherlands is introducing blockchain technology to its financial system

De Nederlandsche Bank (DNB), the central bank of the Netherlands, has launched a new 'Blockchain Development Campus' initiative to allow banks to develop and share information using blockchain, the distributed ledger system used by bitcoin.
The Dutch government has even appointed a dedicated “Fintech Ambassador”, Willem Vermeend. Vermeend is an economics professor and former Minister of Social Work and Employment. He hopes to serve as a bridge between the government, the Fintech sector and regulators.
Everyone needs teamwork
To facilitate learning and share information among banks and financial institutions, DNB will start a school in September.
Collaboration is definitely on the agenda, with Fintech Ambassador Willem Vermeend saying that despite the creativity of the Netherlands, the 20 institutions currently working on blockchain have no idea what others are doing.
For example, ABN Amro has hired a 30-person team to evaluate the possibility of using systems such as blockchain within the bank, and Rabobank has also partnered with NexusLab to explore possible future developments.
DNB enters fintech sector
This is not the first time that DNB has been involved in blockchain technology. Back in June, Ron Berndsen, head of DNB’s market infrastructure policy department, revealed details about the Dutch central bank’s experimental currency, DNBcoin.
At the Netherlands Blockchain Technology Conference on June 20, 2016, Ron Berndsen gave a speech:
“We started the DNBcoin experiment last year. The general idea is to get a deeper understanding of the practical application of blockchain technology by adjusting the Bitcoin software ourselves, which is more effective than just doing desk research and attending related conferences. And to avoid misunderstandings: DNBcoin is only used for internal experiments, it will not be circulated on the market.”
Why Central Banks Are Interested in Blockchain
In fact, the Dutch central bank is not the first central bank to get involved in blockchain technology. We previously reported that the Indian central bank (the Reserve Bank of India) is also exploring the application of blockchain to reduce the use of cash.
The Bank of Canada and the Bank of England have also announced that they will consider using blockchain technology for various purposes. So there is a very real possibility that all currencies will be virtual in the future, and it is no surprise that central banks are not far behind in the currency game.
The possibilities offered by blockchain technology are endless, and Ron Berndsen summed it up best in the closing remarks of his speech:
“History tells us that when faced with the near future, the wisest approach is to anticipate what is possible rather than what is impossible. Blockchain technology offers a range of advantages over current technology. However, there are also some disadvantages and obstacles.