Leading Belgian Bank Mulling Over Launching Its Own Digital Currency, As Per Reports

KBC, one of the biggest insurance and banking companies in Belgium, divulged its plans to release its own virtual currency, moderately changing its perspective to virtual currencies.

KBC Coin, the bank’s native digital asset, would be a sort of reward token that would permit the bank to develop correspondence strategies with its clients, promote its platform, and drive customers to adopt its services.

Apart from the regulatory substructure and the economic attributes of the project, KBC is focused on the technological and privacy concerns of its digital currency. As per the local newspaper De Morgen, CEO Johan Thijs mentioned they were looking to “protect the identity of their customers,” giving their clients a platform that permits them to have absolute control of their data.

Statements shared by Mr. Thijs and collated by Business AM give a brief idea of how the cryptocurrency might function if it launches.

The statement mentioned,

“This coin can initially be earned by loyal customers and spent on additional services … The coin will be in a closed system. It’s a ‘closed loop currency’. So it’s not a currency like the euro that allows you to go around the world and make payments everywhere … It’s a digital currency that we use in a certain environment, for example the customer environment.“

Notably, CBDCs want to set themselves up as the next tread in the evolution of money by becoming the banks’ substitute to digital currencies. Nevertheless, even CDBCs are not completely safe. For instance, Dubai Coin, a scam cryptocurrency being marketed as a coin issued by the Dubai government, surged more than thousand percent in Crypto.com recently despite warnings from the nation’s administration mentioning it had no association with the project.