De Nederlandsche Bank (DNB) is concerned about the dominance of American companies such as Visa and Mastercard in the Dutch payment system.
According to DNB, this dependence can be used in the future as a political pressure means, especially as a government like that of Donald Trump decides to use payment transactions as a strategic weapon. To cope with that threat, the Central Bank argues for a digital euro.
European alternatives as a solution
DNB is actively committed to a more independent European payment system. According to the bank, the current dominance of American payment companies entails considerable risks. “Foreign governments can influence how and to whom we pay. That is not the side we want,” warns DNB.
To reduce dependence on foreign players, the bank sees a lot of potential in European alternatives. For example, the European Central Bank (ECB) is working on the development of a digital euro: an innovative payment method that should even function without an internet connection. The aim is to give Europe more control over its own financial infrastructure.
In addition, DNB argues for a wider rollout of iDEAL within Europe. This Dutch payment system has been considered a reliable solution for years and can serve as a foundation for a European alternative, without dependence on foreign technology.
“We have to ensure a safe and stable way of paying in our own hands,” said the central bank.
What does this mean for crypto?
What the arrival of a digital euro means for the cryptomarket is still uncertain. On the one hand, this development could accelerate the acceptance of blockchain technology. Governments and banks will then focus more on digital assets, which can lead to clearer regulations and integration of crypto in the broader financial system.
On the other hand, the digital euro could become a direct competitor of existing stablecoins such as USDT. This could affect networks such as Ethereum (ETH), where Stablecoins play an important role in decentralized financial applications (Defi).
Certainly not everyone is enthusiastic. Many people are skeptical about the digital euro because of concerns about privacy and control. Critics fear that central banks will soon be able to follow exactly where, when and how people spend their money. That could limit the financial freedom of citizens and governments could give unwanted influence on the spending pattern of individuals.
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Source: https://newsbit.nl/komst-digitale-euro-cruciaal-volgens-dnb-we-moeten-zelf-de-controle-houden/
