Norway Central Bank plans to launch its own cryptocurrency

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Norway Central Bank, Norge Bank, is considering the prospects of launching its own cryptocurrency, which will complement the national currency.

The document (at the end of the post), prepared by the representatives of Norges Bank, considers at least three possible ways to apply the central bank digital currencies (CBDC) – providing a reliable alternative to deposits in private banks, a legal means of payment in addition to traditional money, and an independent backup solution for electronic payment systems.

Oystein Olsen, the head of Norges Bank, noted that the reduction in the use of cash pushed the representatives of the Norway Central Bank to the idea that in the future there might be a need for a number of new attributes that are necessary to ensure efficient and reliable operation of the payment system and confidence in the financial system.

According to data provided by Norges Bank members, the possible launch of a cryptocurrency will not affect the ability of banks and other financial institutions to provide credit to the public. The issue of traditional money will continue as long as the need for them is maintained. At the moment, the working group of the Central Bank has completed the initial stage of considering the potential for launching a digital currency. Norway is not the first state that intends to issue a cryptocurrency – the Central Bank of Sweden, Riksbank, is considering the launching of e-krona.