15 Insights on Netherlands take on Cryptocurrencies
Jul 29, 2017 Posted / 2030 Views
To develop a blockchain-based digital currency the Dutch Central Bank has introduced its plan to the people. DNBCoin is the name of the future digital money unit suggested by Dutch Central Bank on their annual report. It will introduce as a “prototype of a blockchain-based currency”. It is expected to increase transparency, security and availability of electronic payments to the public. It requires a proper attention so as to smoothen the transaction processes.
The Dutch Central Bank regards blockchain as a technology with a potential to improve banking business processes. It is something that shall enhance the entire banking system and change it for good.
Since 2009 in the virtual currencies turnover, such as bitcoin, this infrastructure is high speed, low cost and maintains the transparency of transaction.
Central banks are looking for a permanent digital alternative to digital cash money. It seems that central banks are no longer trying to eliminate cash from circulation, but are seeking to digitalise it. So as to ensure their rule in every regard.
Netherland has been working hard at embracing the digital currency bitcoin, which gave it this name as bitcoin friendly country. Arnhem became the first place to have a supermarket that accepted bitcoin in 2014. It was from there where it was originated. Therefore it is said to be a bitcoin friendly country where as it was great struggle for bitcoin to enter several other countries.
In 2014 Dutch has launched their own digital currency called Guldcoin. It was named after the guilder Dutch currency. A significant level of acceptance among Dutch businesses has gained by it.
In spite of a smaller country it hasn’t stopped it from embracing bitcoin and the blockchain technology. This showcases that it tries to maintain itself at the top spot because once upon a time (in 2014) it was only in Netherland where bitcoin was used in the market.
DNB has put together a working group of in-house expert to create the simulation environment, who would act as fictional participants in a digital currency system.
The DNB team mined their first DNBcoin block using five networked laptop known as genesis blocks. They quickly generated thousand of more blocks for the testing of the ins and outs of the process like setting transaction fees.
The end of the bitcoin life cycle is more than hundreds years from now. Therefore they wanted to simulate what those conditions might look like as well.
The Central bank were created using a single laptop before opening the network in other computer for the this experiment they needed to mine all the DNB coin.
Brendsen named blockchain potential to impact all three of its “primary task”, to provide supervision and oversight and inform monetary policy. It also promotes and favours the smooth functioning of the payment system.
Buying a cryptocurrency these days is a very big job. When bitcoin brokers ran out of cryptocurrency to sell, people said that cryptocurrency was very troublesome for companies. In the Netherland this issue effected all the major BTC brokers.
In Netherland to exchange of bitcoin, lightcoin and Ethereum became very easy by Coinbase. 32 different countries around the world were operated by bitcoin. This linked several companies altogether.
To develop a cryptocurrency Dutch has disclosed its plan which supported payment system in Netherland. The Dutch Central Bank is considered as a technology with a potential to improve banking business processes.
Blockchain base technology is too much transparent and secure. For availability and financial inclusion cash still needs to be around as a payment mechanism. Therefore, it will take a long time for bitcoin to enrich the markets and completely conquer it over the current existing trading system.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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