According to the representatives of Central Bank, blockchain technology is still a useless addition to the national Dutch payments system. Analysts of De Nederlandsche Bank (DNB) concluded that distributed registry technology (DLT) is inappropriate for the current financial and payment infrastructure due to its inadequate ability to scale and handle large volumes of transactions.
DNB’s view is based on the results of experiments within the Dukaton project, which has been testing four DLT prototypes during the last four years . The experiments of Dukaton were designed to find out what value technology could bring to the current payment system of the Netherlands. The first prototype was based on the source code of bitcoin.
According to the results of the testing, the central bank acknowledged that blockchain can increase the stability of the financial infrastructure to external attacks, but this advantage is offset by the complexity of “scalability, power and efficiency.”
“The current payment systems are very effective and can handle large volumes and ensure the legality of payment. Tested blockchain solutions demonstrate that they are not efficient in terms of costs and energy consumption and can not process a large number of transactions, “the Central Bank report says.
At the same time, DNB does not rule out the possibility that as the industry progresses, advanced algorithms will be able to meet all the technical criteria of the Dutch financial system. The central bank stresses that it will continue to invest in further development of applications and conduct experiments with the blockchain.