DNB is concerned about American influence on pin payments

The Netherlands and Europe must become less dependent on the United States, said De Nederlandsche Bank (DNB) at the presentation of the annual figures.

As an example, DNB mentions the payments at the cash register. “They are largely cared for by non-European companies,” said DNB, referring to Visa and Mastercard who has been taking care of the technology behind PIN payments for decades.

It is now not inconceivable that President Donald Trump uses these companies to put pressure on Europe: “The policy of foreign governments can result in control over how and to whom we pay. That is undesirable,” said DNB.

DNB has been arguing for European alternatives for some time. For example, the European Central Bank is working on behalf of the European Commission on the development of a digital euro. With this digital variant of the normal euro, it should always be possible to pay, even if the internet is flat.

DNB also supports the European rollout of the Dutch payment system iDEAL. “We must get a means of payment that is independent of non-European parties. And that can offer a good relapse in crisis situations,” said board member Olaf Grind.

DNB president Knot joined. “This no longer feels like a era of change, but as a change in era,” he quoted Pope Francis.

Trump put pressure on the American system of central banks, the FED, last night on social media to lower interest rates. Knot said that he “follows with some care what happens on the other side of the ocean. I know this is my colleagues at the Fed.”

Knot sticks to the American law, which protects the FED against political interference, just as it happens with the ECB and DNB in ​​Europe and the Netherlands. “There is freedom of expression, also in vs. so let’s not overrest,” he said about Trump’s comments. “But if this happens in Europe, I would also be unhappy with it.”

In the meantime, about a third of the Dutch gold supply in New York is in the vault of the Fed. In 2014, the Netherlands already got a part back. Knot does not expect that the gold supply can be used for a further deteriorating relationship with the US, for example by taking it hostage as a pressure agent.

“The Federal Reserve of New York is, just like the Fed, to a large extent independent. That is where our gold is,” emphasizes Knot. “We have comprehensive contracts with the New York Fed. So no, I am not worried about that at the moment.”

DNB does, however, want to adjust the policy with regard to its own investments. The Central Bank is considering investing a part in defense and companies that do in cyber security.