The Dutch central Bank, virtual currencies as the bitcoin not yet as a fully-fledged counterpart to the euro. According to the supervisor, the bitcoin is currently unsuitable as a unit of account and the price of the cryptocurrency would be too much rocking.
DNB has a ‘bulletin’ released, in which the supervisor on the Dutch banks his views on virtual currencies in general and bitcoin in particular. The Dutch central Bank suggests that cryptocurrencies ‘foreseeable future’ is no valid alternative to the euro and other currencies. DNB claims that there are worldwide every day an average of only about 65,000 bitcointransacties take place and less than a thousand in the Netherlands, while there is a daily 16 million transactions would take place.
According to the supervisor, the bitcoin is not very useful. It would have limited usefulness as a method of payment, and partly suitable as oppotmiddel. The bitcoin as a unit of account are inappropriate. DNB points, among others on the volatility, or the strongly fluctuating price of bitcoin. The bitcoin is according to DNB, also not a good alternative for euros and other currencies.
The regulator also believes that there is the necessary security issues to adhere to the virtual currency and the decentralised structure of cryptocurrencies. DNB points out amongst other things, on the bankruptcy of Mt. Gox. Also is the Dutch deposit guarantee scheme does not apply and there is a chance for robbery of virtual money by cyber criminals.
DNB also points to the transaction costs of bitcoin payments. These are currently very low, but the Nederlandsche Bank argues that these low rates on term no longer be maintained. This refers to DNB the fees that miners make.
The supervisor concludes that cryptocurrencies like bitcoin ‘very limited’ the role of money and that there are many risks associated with it. DNB proposes finally that the bitcoin is currently no good alternative for “hard” currency.
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