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Crypto, blockchain and DLT

Crypto, blockchain, and Distributed Ledger Technology (DLT) are closely related concepts in the context of innovation in digital payments. Crypto refers to digital forms of value, blockchain is the underlying technology on which many cryptocurrencies run, and DLT is the broader technological family of which blockchain is a part. Although the Dutch Payments Association does not actively focus on crypto, we closely follow technological and regulatory developments in this domain.

Developments and social context

  • Institutional interest in DLT
  • Central banks, including the ECB and DNB, are exploring DLT applications through projects such as Appia and Pontes. These studies focus on cross-border payments and links to existing infrastructures such as TARGET.
  • Regulation of crypto and stablecoins
  • The European MiCAR Regulation(opens in new window) (Markets in Crypto-Assets Regulation) provides the legal framework for the issuance and trading of crypto assets. This regulation is relevant for financial institutions operating in a changing digital landscape.
  • Digital euro and public alternatives
  • The development of the digital euro is attracting a great deal of attention. However, it is unlikely that the digital euro will use blockchain technology.

The role of the Dutch Payments Association

The Dutch Payments Association has an observing role with regard to crypto, blockchain, and DLT.

  • We monitor and interpret technological trends and experiments, such as the ECB projects Pontes and Appia;
  • We inform our members about relevant developments and their potential impact on payments;
  • We explore the possibilities of DLT for efficient and interoperable digital payment solutions.

Blockchain technology extends beyond crypto payment methods. Consider smart contracts in trade and tokenization for secure access to financial services.

Frequently asked questions

  • Will the digital euro run on blockchain?

    Probably not. The ECB is investigating alternative technologies. DLT is being tested in experiments, but is not a starting point for the digital euro itself.

  • What is the Dutch Payments Association doing with crypto?

    We are not actively involved in crypto initiatives, but are monitoring developments from a distance. Our focus is on ensuring the smooth functioning of regular payments.

  • Is blockchain the same as DLT?

    No. Blockchain is a specific form of DLT in which transactions are linked in blocks. DLT is the umbrella term for all types of shared databases.

  • What is the difference between crypto and blockchain?

    Crypto refers to digital currencies such as Bitcoin and Ethereum. Blockchain is the technology that makes these currencies possible: a shared, immutable ledger of transactions.