Dutch Central Bank Develops Blockchain-Based Prototype Currency 'DNBCoin'

According to the latest news, the Dutch Central Bank is working on developing an internal blockchain prototype called "DNBCoin".

This is the information revealed in the latest annual report published by the Dutch Bank on March 16. Although it is a relatively small project, the Dutch central bank may have been inspired by the DNBCoin project. In the report, it pointed out that blockchain technology has the ability to improve its business processes.

DNBCoin is described as a “prototype coin based on blockchain technology”, but no further details are given in the report. DNBcoin appears in the report under the heading “2016 goals”, which seems to suggest that the Dutch central bank has made the project a priority for its internal development.

Blockchain technology was mentioned many times in the report and is believed to be able to save costs for the financial industry. However, the Dutch central bank said it is too early to draw conclusions about which blockchain applications will take shape in the future.

The report states:

“Blockchain technology will impact the revenue model of the banking system, allowing banks to generate revenue and reduce costs in new and possible ways.”

Payments and banking consultant Simon Lelieveldt believes the move suggests the Dutch central bank is keen to explore the use of blockchain in digitizing cash.

“So when we see central banks moving into electronic cash now (now with the blockchain or fintech label), it’s a sign that electronic cash may no longer be something that companies are trying to bring to market, but may become a permanent digital alternative to cash, so it’s different now.”

Central banks and blockchain

In recent months, a growing number of central bankers from around the world, and most notably the Bank of England, have suggested that blockchain technology could be used to create more centralized digital currencies.

Some believe this could have a lasting impact on the traditional banking system.

In a speech earlier this month, Ben Broadbent, deputy governor of the Bank of England, who is responsible for monetary policy, said he did not think Bitcoin would achieve widespread adoption, and said digital currencies issued by central banks could reshape deposit behavior and even, in extreme cases, curb banks' ability to make loans, of course, provided that people migrated to digital currencies.

But these concerns have not stopped people from imagining how central banks could issue their own digital currencies. British researchers have even proposed a new digital currency called "RSCoin."

Original article: http://www.coindesk.com/dutch-central-bank-to-create-dnbcoin-prototype/
By Stan Higgins
Translator: printemps
Editor: printemps
Source (translation): Babbitt Information (http://www.8btc.com/dutch-central-bank-blockchain ‎)