Norway are the next country to weigh in on the cryptocurrency debate. With more and more countries now entering the woodwork, Norway seem to be taking a crypto-friendly approach to the situation, suggesting that the Bank of Norway (Norges Bank) are now considering the production of their own central cryptocurrency. This is similar to news resonating around South Korea at the moment, news that suggests the Bank of South Korea, are eventually going to roll out their very own cryptocurrency. Which country will truly do this first? Nobody really knows.
This comes from the fact that Norway is starting to become a cash-less society. Back in 2016, local media reported that only as little as 6% of Norwegians actually used cash as a payment option, with the majority of the population choosing to use debit and credit cards both online and in physical shops. As a result of this, one bank, DNB Bank decided to stop handling cash and processing cash payments altogether.
A group at Norge Bank have produced a paper titled: ‘Central Bank Digital Currencies’ it is within this that rumours are starting to surface, suggesting that Norge Bank are focusing efforts to create their own cryptocurrency. This is hardly surprising when you consider the rate at which cash has been replaced within the country.
You can see the full paper for yourself, here-
According to Norges Bank:
“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. If the answer is yes, a CBDC may be an appropriate measure for remedying weaknesses that may otherwise arise.
It is not Norges Bank’s ambition to take over credit provision from banks. A premise underlying this work is that the existence and scope of a CBDC must not impair the ability of banks and other financial institutions to provide credit.”
This is a pretty exciting development. Norway have often been considered as a very technologically advanced country and indeed, the production of a national cryptocurrency would set them up for a very strong future on the blockchain. The most exciting thing here though, is that Norges Bank are responding to some real-life facts and figures here. They see a gap in the market, driven by a thirst for a cash-less society. This indeed is a very exciting time for Norges Bank and the people of Norway.
It’s still in its early stages, but soon enough, Norway could be spearheading a new culture for sovereign cryptocurrencies across the world.