Rabobank Drops Its Cryptocurrency Wallet Project ‘Rabobit’
The Leading Dutch Bank- Rabobank has finally confirmed that it is not proceeding further with the development process of its crypto wallet project. Rabobank has canceled the crypto wallet project. Rabobank is not the only bank to call off its project of crypto wallet; earlier, another Dutch bank ABN AMRO too canceled its plan of developing its crypto wallet project ‘Wallie.’
The news of Rabobank dropping its crypto project was revealed on May 23rd by The Next Web.
A year back Rabobank, examined the opportunities in cryptocurrency, and in February 2018, the news started circulating that the Netherland based bank is working towards a new project based on cryptocurrency, codenamed it as Rabobit. The goal of Rabobit was to reduce the gap between bank accounts and crypto wallets.
Rabobank spokesman gave the clarification on canceling the project through Email saying, after mindfully remembering our customers the bank has finally considered that it’s not the right time to go ahead with the project and develop the next advanced level.
When this news was reported, people believed it to be a hoax, but the Dutch bank confirmed the news by studying the plan. The new project was intended to work as a part of the Rabobank Moonshot program, and the main target was at encouraging advanced technologies in fintech services.
The Rabobank was transparent to tell its customers the reason to drop the project saying due to regulatory conditions.
The spokesperson said:
“For instance, Dutch authorities, AFM and DNB recommend regulations of crypto at an international level.”
Cryptocurrency experiment benefited
Apart from this, the representative of Rabobank mentioned that the crypto wallet development process had benefited the bank to learn some important lessons regarding, its customers and also the crypto market, further helped them to understand how to develop blockchain and cryptocurrency applications.
The bank believes that even though the crypto project service has been abandoned, they have learned a lot of things and it will help them in the future. The spokesperson even mentioned that the initiative has “led to valuable insights and experiences for work in general.”
Per the Dutch Bank statement, the regulatory requirements are not good for the Rabobit project. Various queries related to legislation still needs to be answered. The Regulatory committee did not develop a friendly approach towards the crypto in reality, and this is certainly impacting the expansion of the industry, further resulting in a cancellation of crypto projects or making them experience some tough legislation’s, due to the imposition on the crypto industry.
ABN AMRO also canceled its crypto project due to lack of regulation and increased trading crypto asset risk.
The spokesperson mentioned that even if countries throughout the world are preparing to regulate digital currencies, we still lack a uniform and global legislative technique towards digital currencies.
The bank will be further monitoring the crypto market and developments of regulatory in the crypto industry. If the bank thinks the situations are friendly, then the Rabobank might consider the idea at some level in the days to come but this is just a speculation as of now, and we cannot promise.
Global standards have been suggested by Dutch Authorities for crypto regulation; the plan still needs to come into effect, and this could be one reason for the slow growth of the crypto industry, especially when the internal laws are not in favor of the industry.