Norwegian Central Bank to Launch Its Own Cryptocurrency: Is it True?
The Central Bank of Norway, Norges Bank, is looking to design its own cryptocurrency to serve as a “supplement to cash“, according to Norges Bank Paper.
The Whitepaper takes into consideration the necessary issues to launch the CBDC – “Central Bank Digital Currency“. The Norges Bank sees three options for using CDBC: an alternative to storing financial resources, as “a supplement to cash“, and a backup alternative for electronic payments.
“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,” describes the Whitepaper.
According to the report, the Central Bank Digital Currency could offer users solutions to keep their currencies. However, the Norges Bank refers to the differentiation of the possibilities offered by its possible own cryptocurrency compared to the use of credits. It considers that the two services should not intersect. The Bank will not cease to provide its services, as long as there is demand for it. The Central Bank is still at the start of the development of CBDC.
“It is too early to conclude whether Norges Bank should take the initiative in introducing a CBDC. The impacts of a CBDC – and the socio-economic cost-benefit analysis – will depend on the specific design. The design, in turn, will depend on the purpose of introducing a CBDC.”
The Norges Bank isn’t the first financial institution to take into account the launch of its own cryptocurrency. As the one mentioned above, the Swedish Riksbank announced its plans regarding the launch of e-krona coin in order to balance the country’s monetary circulation.