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Business & Finance

We Don’t Consider Cryptocurrency Money, Says Dutch Central Bank Director

The Dutch central bank, De Nederlandsche bank, disregards any statement solidifying cryptocurrency as actual money although stating that there is an immense blossoming future for the cryptocurrency in the makings. They came up with their definition and values as to what to describe as real money and what to regard otherwise.

As explained by the Dutch bank divisional director, Petra Hielkema, in a magazine over fintech, she defines real money, addressing all of the cryptocurrency enthusiasts as something that can be spent, earned and the surplus amount to be resourced. She further explains that real money can be calculated independent of any other element deciding it at the back end.

If something wants to be treated as money, you have to be able to spend, save and calculate with it.

However, the definition might seem rather unpleasant for the crypto-loving folks, the bank did not rule out that in the future as the market matures out of the futility, according to the Dutch News.  Hielkema further claims,

Things are not often bought with cryptocurrencies, it is too volatile for savings and its value is expressed in real money. So we do not consider it to be money as such.

The divisional director then turns to softer side of things as she admits the dutch bank is amazed by the technology behind the cryptocurrency system, the blockchain and that that has been under their constant eye of experimentation. The bank discloses that they have come up with prototypes of their own mimicking the exact tech of blockchain. The dutch divisional director responds as,

We have been experimenting with the technology for the past three years and have developed four prototypes. The experiments have shown that the systems cannot yet be incorporated into the Dutch payment system but there are ‘possibilities for in the future, with more innovation.

Nevertheless, the bank has shown tenderness towards considering the cryptocurrency, the breakout star of the future. A report by CIO Americas, Wealth Management (CIO-A WM), titled the “Cryptocurrencies: Beneath the bubble“, describes elaborately that the hunch that the crypto-market is going to be boom up officially is rather fanatical. CIO-A WM reckons that the rise of the cryptocurrency up the charts is not an obvious trend rather an irregular rise in the popularity of the market, which can simply crash down from that high a potential lately. The instability and the volatility are enough for the analysts to announce the poise of the system is exposed to havoc.

The Dutch finance minister, Wopke Hoekstra, considers cryptocurrency, an exploitation of the customers and the investors as they are prone to financial scams. He takes things to an extreme as he vows to fight back the crypto-market and urges the European and international authorities to get involved in cleansing the crypto-scams.

The Bank of Finland has issued a release, titled the “The Great Illusion of Digital Currencies” conjecturing the cryptocurrency’s non-existence stating that in case the banks allow dealing in cryptocurrencies, it is nothing apart than having mere bank accounts in the banks but without having the actual material money in your possession. The bank further regards the cryptocurrency trend as a “fallacy” and a disguise for the fraudulent.

The UBS strategist, Joni Teves responded to CNBC that the bitcoin is still under development stages and needs some time to sink its feet down firm into ground. He says,

Bitcoin is still too unstable and limited to become a viable means of payment or a mainstream asset class.

Teves then continues the discussion that even if we disregard the risks and the evergreen volatility of the cryptocurrency, the immense transactions on a daily basis that goes on around the globe can put the cryptocurrency platform under a lot of stress, the strain of which would be horrible consequences. Teves states,

Bitcoin cannot handle the volume of transactions processed by mechanisms being used in the real world.

But the end of the discourse sees Teves turn round in favor of the cryptocurrency system portraying it as a, “legitimate asset class”.

CNBC also has published a video explaining the requirements bitcoin is to hold for future success.

The Dutch bank’s statements when analysed yield their concerns about the customer’s financial assets and the monetary resources. We find out the bank has the claims against the crypto-market valid to some extents.

With the advent of the cryptocurrency franchises such as bitcoin dominating the financial charts throughout out of the blue, people have been eager to pour most of their capital in yet the authorities (the likes of SEC) deem it immature as of late. This is true to some extent, too, as several fraud and scam case have surfaced involving cryptocurrency worth billions vanishing into thin air. Controversies instead of igniting the critics awake rather tend to coax people to direct capital into the crypto-market. The recent Donksoi controversy turned out an exact example of the fact.

While the crypto-market is on the go benefiting whoever intends to invest in but the major banks and companies tend to keep away from lank amount of virtual currency that roams the virtual market. What the future holds for the crypto-market, is still a heavenly knowledge with analysts and enthusiasts offering their opinions for the very cause. While considering a discussion out of any resentful official statement and any fan remark, we find the crypto-market exactly as the authorities describe it as, a platform where the nasty can easily exploit the others and loot them off of their cash. Though the opinion stays within the discussion as author presents it, the key is to keep aware of what a person is going to invest into, prohibiting any illegal means himself, thus, keeping the morales intact.

Mohammad Shazil

A Riverside, CA born Electrical Engineer who bears the passion to write over every happening around. A crypto zealot. Shazil is the sub-editor of BlockPublisher news. Contact the editor at editor.news@blockpublisher.com

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