Norway’s central bank will begin testing technical solutions for issuing its own digital currency over the next two years, as similar pilot projects have been launched by the central banks of other countries.
According to a statement from the Central Bank of Norway, four years after conducting research on the concept of a state cryptocurrency, the Central Bank is ready for the next step – “technical testing” with a deeper analysis of the consequences of issuing its own digital currency.
The central bank said that payment technologies are developing at a fast pace and the use of cash in Norway is probably the lowest in the world. One of the incentives for further testing of technical solutions for issuing state cryptocurrencies was similar pilot projects in other countries.
“Central bank money provides the payment system with a number of important attributes that can be important for the preservation and further development of government cryptocurrencies. We need more knowledge to decide if issuing a digital currency is appropriate, ”said Norwegian bank governor Oystein Olsen.
The specific timing of the release of the state cryptocurrency in Norway has not been specified. Central banks of other countries are also exploring the possibility of issuing state cryptocurrencies. Earlier this month, the Central Bank of Japan launched a proof of concept (PoC) test for the government’s cryptocurrency, which will run until March 2022.
The central bank of Sweden has completed the first phase of testing the digital krona and is planning to launch the second phase in cooperation with commercial banks. China has advanced the most in testing the state cryptocurrency – another pilot project was recently launched in the Chinese province of Hainan.
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