Bank of Netherlands’ is not yet ready to accept cryptocurrency into their financial system
Blockchain technology is not yet ready for implementation in financial markets, according to a report by De Nederlandsche Bank (DNB) on June 7.
After three years of testing with Distributed Ledger Technology (DLT), of which blockchain is one type, the central bank of the Netherlands has concluded that the current algorithms are unable to handle the volume of transactions of financial market infrastructures in an absolutely safe and energy-efficient way.
After measuring and checking the results of their tests, DNB concludes that, while blockchain technology is interesting and may have a good potential for the future” current systems that do not use DLT “are extremely useful, can handle big volumes and provide the legal assurance of having paid.”
DNB is not the single major bank looking at the impact blockchain tech and cryptocurrencies might have in banking. In March, the Treasury of the UK announced the start of a cryptocurrency task force made of the Bank of England and the Financial Conduct Authority. More recently, at the Money20/20 conference in Amsterdam on June 5, leaders from the Bank of England, the Bank of Lithuania, the Bank of Canada and the Swiss National Bank spoke about the relation between cryptocurrency and the traditional banking sphere.
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