Dutch finance minister Sigrid Kaag is pushing for the introduction of a central bank digital currency (CBDC) and the passing of a law requiring banks to monitor all transactions over 100 euros.
There’s also a push for a digital euro from the European Central Bank. Critics say CBDCs can track and monitor citizens, potentially violating their civil liberties.
The digital euro is becoming more real, Kaag wrote in a letter to the House of Representatives in July. “I think it is important that we in the Netherlands, with our innovative and open economy, actively participate in this thinking.”
She added that a CBDC, “has been placed high on the agenda of the Eurogroup partly thanks to the commitment of the Netherlands.”
“User privacy should be carefully designed, as should safeguards to prevent the digital euro from being used for money laundering, terrorist financing and tax evasion.”
“During the Eurogroup, a number of member states emphasized the importance of maintaining the momentum for the development of a digital euro and that the project should continue,” Kaag said.
“We believe that it is time to use AI to more effectively track down criminal money flows. The recent past has shown that banks have difficulty to do this in a cost-effective way on an individual basis. The fact that banks can tackle this jointly with the amended Act will certainly contribute to the aim of the Wwft. Nevertheless, safeguards will have to be given on parts to protect the rights of customers,” said cyber, data, and technology law expert Wouter Seinen of Pinsent Masons.
Business AM reports that Kaag is drafting legislation to make banks monitor transactions over 100 euros. According to the outlet, banks would have to store transactions over 100 euros in a government-accessible database.