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Dutch Central Bank Aims to Play Leading Role in Developing CBDC in Europe as Part of Plan to Become Increasingly Digital

The Dutch central bank, De Nederlandsche Bank made an announcement in its bulletin, saying that it aims to become the European leader in the development of central bank digital currencies (CBDCs). The report highlighted that the topic of CBDC has gained more public exposure in the Netherlands than in “several other euro area countries for several reasons.”

The Dutch central bank has a positive outlook on CBDCs, as it believes that central bank money is essential to preserve as it is important for people to maintain essential trust in the monetary system.

The European Central Bank (ECB) previously expressed its interest in launching a digital Euro and stated that they have been doing theoretical research and practical experimentation. The report stated that the Netherlands could be a suitable testing ground for its testing. Even after evaluating the potential risks of CBDCs, the Dutch central bank said, “We are ready to play a leading role.”

The central bank emphasized that the use of cash is declining in the country, signaling that its citizens are using less central bank-issued currency for purchases. A CBDC could potentially allow more diversity in the payments market, as well as making cross-border payments to be more efficient, according to the central bank.

Similar to other countries in its catalyst for development for the digital payments, the report stated, “Many stores now ask clients specifically not to pay in cash, which effectively means that only private money is accepted. Due to the coronavirus pandemic, using cash has become more risky due to its risks of transmission.

However, the Dutch central bank was not included in the working group formed by six central banks to share experience on use cases on CBDCs. The six central banks were: the Bank of Canada, Bank of England, Bank of Japan, European Central Bank, Sveriges Riksbank, Swiss National Bank, and the Bank for International Settlements.

Sweden’s central bank has also started testing an e-krona, its CBDC to be run on blockchain, to simulate everyday banking activities, including payments, deposits, and withdrawals from a digital wallet on a mobile phone.

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Twitter CEO Jack Dorsey Apologizes for Bitcoin Hack, But Not Before Dutch Politician Was Compromised

Twitter CEO Jack Dorsey came forward on Thursday to apologize thoroughly for his social network company’s failure to prohibit and shut down Bitcoin scam artists’ digital heist of important verified accounts, that ranged from that of tech moguls Elon Musk and Bill Gates to political figure Joe Biden.

The hack was reported to be the biggest one that Twitter has suffered in all of its history, resulting in the seizure of at least 130 accounts on the social platform. All pertained to prominent figures and celebrities, and hackers tweeted out the same message through at least 45 of those accounts, demanding for Bitcoin (BTC) funds. The message that appeared on Elon Musk’s verified account was formulated as so:

“I am giving back to the community. All Bitcoin sent to the address below will be sent back doubled! If you send $1,000, I will send back $2,000. Only doing this for 30 minutes.”

Other accounts, such as that of coin exchange Binance, depicted that the coin exchange had partnered with “CryptoForHealth” and was looking to give back 5000 BTC to the community.

Did Hackers Have a Political Agenda?

Of all the accounts, hackers accessed the private messages of 36 verified accounts. CEO Dorsey revealed that one of those accounts belonged to an elected political official in the Netherlands. Twitter however does not believe any other former or current elected political figures’ direct messages were accessed. This may come as a bit of reassurance to former President of the United States, Barack Obama, and political runner-up, Joe Biden, who also had compromised social media accounts.

Identity of Hacked Political Account Comes to Light

Though Twitter has not disclosed the identity behind the Netherlands elected official’s hacked account, recent information has come to light that may suggest that it belonged to no other but Dutch politician Geert Wilders.

The far-right politician told BBC news recently that Twitter was referring to his verified account when it mentioned that one of the 36 accounts that had their direct private messages snooped through belonged to an elected political official.

Political Figure Spills the Beans

During the Twitter Bitcoin scam attack last week, Wilders’ profile picture was replaced with a cartoon of a black man, and his account’s background picture was switched to the Moroccan flag. The far-right Dutch politician is quite a figure in the Netherlands, as his Freedom Party is the second biggest part in the Netherlands’ House of Representatives.

Wilders told BBC that he had been using Twitter’s direct message tool for about 10 years now. He went on to say that he was informed by Twitter following the fraudulent hack that not only had his Twitter account been hacked for some days, but the hackers also posted tweets on his account and sent DMs in his name. He confirmed that the hackers indeed got full access to his DMS, which “is totally unacceptable in many ways.”

The Dutch politician is extremely concerned with the Twitter security breach, as his Freedom Party had campaigned to ban Muslim immigration and shut down mosques. He expressed his view:

“People critical of Islam or regimes in the Middle East [including those] from within countries like Iran, Saudi Arabia and Syria [have sent me DMs over 10 years] and I do hope they will not be in danger if their identity would be exposed because of this hack. I had deleted most of them but maybe some were left there for the hacker to see and copy.”

CEO Jack Dorsey and Twitter Apologizes

Twitter took matters into their own hands and commented on the incident, saying that they have recently implemented safeguards to improve the firewall security of their internal systems. They went on to add that they were working in collaboration with law enforcement to further the investigations of the infamous Twitter BTC scam. Twitter also apologetically said that they are committed to regaining “the trust of all their stakeholders with their every action, including how they address the security issue.”

Twitter Not The Only Victim of Bitcoin Schemes

Bitcoin scams are becoming increasingly common on social media networks, as Twitter is not the only platform that has been targeted in such fraudulent attacks. YouTube has also recently been faced with a lot of backlash, resulting in lawsuits, due to the volume of cryptocurrency scam videos streaming through their platform.

Apple Sues YouTube

In recent news, co-founder of Apple Steve Wozniak filed a lawsuit against YouTube for the video content platform’s failure to take down fraudulent videos that impersonated Wozniak in an effort to extort XRP funds from YouTube subscribers. Google is also implicated in the lawsuit, as they are the parent company of YouTube.

Dutch Government Invests Heavily in AI to Compete Globally

The Dutch government, in a significant move to bolster its position in the rapidly evolving field of artificial intelligence (AI), has committed a substantial investment of €204.5 million ($222.07 million). This strategic initiative, announced on January 18, 2024, is part of the Netherlands’ comprehensive approach to harnessing the capabilities of generative AI systems, including advanced technologies like ChatGPT.

Contextualizing this development, the European Union had reached a political agreement on a risk-based model for AI regulation in December 2023. While some details are still under finalization, the Dutch government has proactively adopted the essence of the EU’s landmark AI Act as immediate law. This preemptive adoption by the Netherlands marks a pivotal step in AI governance, demonstrating the country’s willingness to engage actively with the dynamic AI landscape, even as the EU Act awaits formal enactment.

A significant aspect of the Dutch government’s investment is the fostering of local AI development. The funds are aimed at invigorating the AI sector within the Netherlands, enabling it to compete more effectively on the international stage. The government’s initiative is not just about financial investment but also encompasses regulatory clarity and support for AI research and innovation. This move is essential, considering the leading positions of Asia and the United States in the use of responsible generative AI.

The Dutch government’s strategy extends beyond mere development and investment. It also includes organizing campaigns to educate the populace about data protection in the context of generative AI. Additionally, there’s an ongoing inquiry into establishing a secure and functional national AI testing facility for public use. This comprehensive approach underscores the Dutch government’s commitment to not only developing AI technology but also to ensuring its responsible and ethical use.

Moreover, the government’s stance on AI reflects a broader trend within Europe to position itself as a global leader in the development of responsible and innovative AI. The Dutch Minister for Education, Culture and Science, Robbert Dijkgraaf, highlighted the need to develop and retain AI talent and to create generative AI forms that meet European standards and values.

The Dutch government’s investment and regulatory approach to AI are vital steps in the global race for AI supremacy. They recognize the importance of not only keeping pace with international developments but also of setting standards that align with European values. This strategic investment in AI showcases the Netherlands’ ambition to be a frontrunner in the global AI arena, contributing to the advancement of AI technology while prioritizing ethical considerations and human wellbeing.

Kraken Acquires Registration for VASP in the Netherlands

Kraken has marked a significant milestone in its European growth strategy by securing a Virtual Asset Service Provider (VASP) registration from the Dutch Central Bank (DNB). This achievement not only signifies Kraken’s commitment to regulatory compliance but also underscores its strategic intent to expand its services within the European market, particularly in the Netherlands.

Strategic Importance of the Dutch Market

The Netherlands is recognized for its vibrant startup and technology sectors, coupled with one of the highest rates of cryptocurrency adoption in Europe—approximately 20% of Dutch citizens own crypto. This makes the country a strategically vital market for Kraken’s European expansion plans. The exchange’s recent acquisition of the Netherlands-based crypto exchange Coin Meester B.V. (BCM), pending regulatory approval, further demonstrates Kraken’s intent to deepen its market presence in the country.

Expansion and Regulatory Compliance

Kraken’s VASP registration in the Netherlands enables it to offer a comprehensive suite of services related to virtual assets, including exchange, transfer, custody, and wallet services. This expansion is part of Kraken’s broader strategy to establish a solid footprint across Europe, having already secured VASP licenses in Spain, Italy, and Ireland, and operates in Belgium through a licensed subsidiary.

The VASP registration aligns with the impending EU’s Markets in Crypto-Assets (MiCA) regulatory framework, showcasing Kraken’s proactive approach to compliance and its commitment to providing secure and regulated crypto services. This regulatory milestone contrasts with Kraken’s legal challenges in the United States, where it faced allegations from the SEC for commingling customer funds and operating without proper registration.

Future Outlook

Kraken’s securing of the VASP registration from DNB is not just a testament to its regulatory compliance but also a significant step towards its goal of becoming a leading player in the European crypto market. With this registration, Kraken aims to introduce its offerings to both retail and professional traders in the Netherlands and across Europe, further accelerating its European growth strategy and reinforcing its position amidst the evolving regulatory landscape.