Dutch regulators warn against Bitcoin

The Dutch central bank, De Nederlandsche Bank (DNB), has rejected digital currencies such as Bitcoin as “a viable alternative for traditional currency”.

The Dutch central bank, De Nederlandsche Bank (DNB), has rejected digital currencies such as Bitcoin as "a viable alternative for traditional currency".

A spokesperson of the Dutch Payments Association claimed that digital currencies were not money but technology: "There is a lot of interest in virtual currencies, owing to their innovative character and their way of challenging the current financial system.

"But this does not make them a viable alternative for the basic functions of money."

The DNB argued that virtual currencies are taking less than 1,000 transactions per day in the Netherlands, against over 16m payments made in euros.

However, Bitcoin’s influence has been recently growing in the country with the ‘Bitcoin 2014 Conference’ taking place in Amsterdam the 15, 16 and 17 May.

Also, the Netherlands’ biggest food delivery network, Thuisbezorgd – a brand owned by Takeway.com – started accepting Bitcoins in November 2013.

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