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KBC Bank Belgium launching its own digital currency

KBC Bank Belgium planning to launch its own digital currency

KBC Bank Belgium, a universal multi-channel bank insurer, plans to launch its digital currency, “KBC Coin.”

KBC Coin, the bank’s local digital currency, will be a sort of remunerations token that will permit the bank to foster client commitment techniques, advance its foundation, and power clients to acknowledge its administrations. Johan Thijs, CEO of KBC stated that,

The bank wants to build a platform that gives the customer full control over their identity.

KBC likewise centers on the mechanical and security issues of its digital money. However, the bank cleared that these are not bitcoins or related volatile coins. For example, the bank itself refers to virtual currencies supported by a central bank.

This coin can at first be acquired by faithful clients and spent on additional services. The cash will be in a closed system. So it’s not a currency like a euro that permits you to go around the world and make payments everywhere.

The coin can serve to reward the loyalty of the customers. For example, it could pay for the franchise after an accident with the KBC Coin or buy travel insurance. Another slope is to pay out some of the bonuses decided by the government for their staff via the KBC Coin.

In a 2015 report, it was mentioned that KBC bank advised its customers concerning the jeopardies linked with Bitcoin and other cryptocurrencies and cited an example of “Tulip bulb mania.” They even listed the risk:

• a mysterious, complex investment,
• no underlying substantiated value,
• unpredictable liquidity,
• an uncertain repayment,
• various technological risks (e.g., loss of data, hacking),
• sensitive to fraud, illegal transactions, and therefore government interventions.

To avoid stereotypes, KBC cited Central Bank Digital Currencies, a sort of digital asset supported by banks and functioning like fiat money, as comparative examples of the essence of KBC Coin.

As of now, KBC Coin isn’t accessible to general society yet, however it is in beta through a private environment. The bank didn’t unveil further insights regarding the venture’s guide.


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