Dutch central bank tested four blockchain prototypes, not satisfied with the results

The Dutch central bank has been working on blockchain solutions, the Next Web writes. Even though it has already developed four blockchain prototypes in three years, none have yet met its standards. As of now, the bank believes the only satisfactory use for blockchain solutions are cross-border payments. Otherwise, it says, the distributed ledger technology results in too-high energy consumption; the bank also claims there is no certainty about whether payment was completed.

“We started with baby steps, understanding the Bitcoin software and mining in a centralized versus decentralized way,” Petra Hielkema, director of payments and market infrastructures at De Nederlandsche Bank, told The Banker. “Then we built prototypes and tested whether DLT networks could benefit parts of our market infrastructure while still providing the functionality needed in payments.”

Despite the issues the bank encountered, Hielkema still believes blockchain to be a promising technology and suggested other central banks invest in it.