Norway Launches Source Code For CBDC Based On Ethereum Network
The Central Bank of Norway, in collaboration with a crypto firm, has published the source code for the trial of its digital Krone, which is built on the Ethereum network.
Norway Developed CBDC Sandbox for Digital Krone
In partnership with a digital asset firm, Nahmii AS, the monetary regulator of Norway, the Norges Bank unveiled the source code for the virtual replica of the country’s fiat currency.
Reports indicate that the Scandinavian nation is working on launching the prototype of the digital Krone. As a result, the authorities have made the project’s source code public.
Moreover, the source is hosted on GitHub and can be accessed through an open-source Apache 2.0 license. Nahmias AS, the fintech company handling the project, noted that it is creating a Sandbox platform for the digital token.
They added that this would allow for testing the token use cases. In addition, the firm is also a Layer-2 scaling solutions provider on the Ethereum blockchain.
Furthermore, the Sandbox has a frontend that offers an interface for the networks to interact. This will process the deployment of smart contracts and provide access control to developers.
The firm will integrate other use cases in the future as the company takes on the project in phases. The firm will deliver the second part of the CBDC project by mid-September.
The Norwegian Monetary Authority has joined other global regulators in developing their digital currency. The steady decline in the use of physical cash forces governments to consider digital tokens as the future of money.
However, this trial is meant to ascertain whether the issuance of CBDC would be safe for the Norwegian economy.
No Crypto, No Problem
It is no secret that most regulators do not want privately issued cryptocurrency dominating their local financial markets. And to counter the rise of cryptocurrency, authorities developed the Central Bank Digital Currency (CBDC).
Since the concept of the CBDC emerged, many countries have started making it part of their monetary policy.
Moreover, CBDCs are pegged to a country’s fiat currency as state-issued virtual assets. This ensures that it is insulated from the volatility associated with crypto tokens.
Meanwhile, the general sentiment in the financial sector is that crypto can never be a reliable substitute for physical cash. While a country’s central bank backs CBDCs, the same cannot be said for cryptocurrency. And this is where most of the argument against digital currency taking over fiat is washed down the drain.
As crypto adoption continues to surge, CBDC as well is no longer a pipe dream. Countries worldwide are considering all the legal requirements for their operation.
In some cases, some have begun their pilot test to ascertain its efficiency. Countries want to use the CBDC for every transaction that fiats can do. However, there are some issues, like whether foreigners could be able to use a country’s CBDC.
Still, the clamor for replacing cryptocurrency with CBDC is gaining traction among regulators. But the question is, will CBDC force crypto out of business?
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