The blockchain technology has successfully made everything to be easy on earth. Yesterday, we talked about how the use of banknotes rapidly decreased in Switzerland and their request to create a state-backed digital currency. We also talked about how Sweden deliberated on whether to issue their own digital currency or not.
Today, it just came to our notice that Norway’s Central Bank, Norges Bank is considering developing its own digital currency. Their main aim of embarking on this development is to ensure confidence in money and the monetary system.
The bank’s working group has already laid down some conditions that would be considered when assessing the issuance of a Central Bank Digital Currency(CBDC). These conditions are: the introduction of a reliable alternative to deposits in private banks, a suitable legal tender as a supplement to cash, and an independent backup solution for electronic payment systems.
Øystein Olsen, the Norges Bank governor seems to be supporting this movement in his words “A decline in cash usage has prompted us to think about whether at some future date a number of new attributes that are important for ensuring an efficient and robust payment system and confidence in the monetary system will be needed.”.
Notwithstanding, this new development should be able to provide the customers with another means to store their asset and it must also have the ability to provide credit to their costumers and other financial institutions.
However Norges Bank Governor has promised to continue to issue cash when the demand calls for it. The development of a digital currency in Norway is only at its initial phase of study.