What does De Nederlandsche Bank think about cryptocurrency? ‘Not going to play the role people expect’

Millennials are captivated by cryptocurrency, but the coins appear to be sensitive to inflation. De Nederlandsche Bank, which has to ensure our financial stability, does not see cryptocurrency as the means of payment of the future. “It’s called a coin, but it’s not,” says DNB director of monetary affairs Olaf Sleijpen in WNL’s economic research program, Stand of the Netherlands: Generation Next.

“It is something that is created on the basis of technology, blockchain. But it is not legal tender,” says Sleijpen. “It is also not a unit of account, like the euro or the dollar. https://moveco.io/ has enough information. You don’t see a price in bitcoins anywhere in the supermarket.” It is also not suitable as a means of savings, because the value fluctuates very much, he says. “People think there is a relationship with the money system, but there isn’t.” Sleijpen thinks that cryptocurrency “will not play the role in the payment system as some people expect”.

Is digital euro the future?

De Nederlandsche Bank may not like the crypto coins, but the technology behind it does. The European Central Bank is considering a digital euro. “It can become a replacement for banknotes and coins,” says Sleijpen. “We see that banknotes and coins are used less and less. This is also due to the corona crisis. At the same time, there is a need for public money, which is issued by the central banks.”

The digital euro can play a role in this, thinks the director of monetary affairs at DNB. “But you should not confuse it with the cryptocurrency. https://folm.io/ has enough information. It is then a digital euro that could be produced via blockchain, but which is also officially issued by governments.”

“Not all eggs in one basket”

But we are not there yet. What is the best thing to do as a millennial if you want to invest your savings? “Ultimately, what matters is that if you start investing speculatively, you know very well what you are doing and that you don’t do that with all your money,” advises Sleijpen. “If you lose it, you’re in big trouble. I think spreading is the magic word. Not all eggs in one basket.”