Norway to start digital currency tests after four years of research

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The Norwegian central financial institution, Norges Bank, is ready to check numerous technical options for a central financial institution digital foreign money following years of analysis.

Norges Bank formally introduced Friday that will probably be conducting CBDC assessments over the subsequent two years upon suggestions from an inside working group. “The working group is of the opinion that the motivation for research into CBDCs has been strengthened. Many central banks are in the process of carrying out similar research, and several are already under way with technical testing,” the central financial institution acknowledged.

According to the announcement, Norges Bank has been concerned in CBDC analysis for the previous 4 years.  

“Central bank cash provides the payment system with a number of important attributes that may be relevant to retain and develop further by issuing a CBDC. Additional knowledge is necessary for us to be able to decide whether issuing a CBDC is appropriate,” governor Øystein Olsen stated.

As beforehand reported by Cointelegraph, Norges Bank thought-about launching its personal nationwide cryptocurrency again in 2018 in an effort to “ensure confidence in money and the monetary system.” 

Norway initiated CBDC analysis due to an enormous decline in money utilization. The Scandinavian nation is taken into account to be the world’s most cashless nation with solely 4% of the nation’s funds performed with banknotes and cash.

Countries the world over are stepping up their efforts to develop nationwide digital currencies. Earlier this week, the Bank of England formally introduced the start of preliminary CBDC research that might end result within the creation of a digital pound.