Norway’s Central Bank said on Thursday it is ready to move ahead and start testing technical solutions for a central bank digital currency (CBDC) over the next two years.
- In an announcement, Norges Bank said the motivation for research into CBDCs remains strong as many other central banks around the world are carrying out similar experiments.
- It has been four years since Norges Bank began researching CBDCs and the bank believes it is now ready for the next step, which involves “technical testing” with more in-depth analysis looking into the implications of launching a CBDC.
- The central bank said payment technologies have evolved at a rapid pace, and cash payments in Norway are now probably the lowest in the world.
- “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,” said Norges Bank Governor Oystein Olsen.
- No timeline has been revealed for when a CBDC will be launched in Norway, “any introduction of a CBDC will still lie some time in the future,” said the bank in a statement.
- Earlier this month, the Bank of Japan announced plans to begin phase one of experimenting with a CBDC by conducting experiments on the basic functions such as issuance, distribution, and redemption.
- Norway’s neighbor Sweden may have a CBDC within five years, according to Riksbank Governor Stefan Ingves.
- In the meantime, China has been testing platforms on which the digital yuan can be freely traded with other fiat currencies.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.