Norway’s Central Bank Innovates in Developing Its Digital Currency on Ethereum

As per the official statement from the Norges Bank, the prototype infrastructure for the country’s central bank digital currency will be introduced on Ethereum. The bank introduces a new open source sandbox code on ETH technology to support interesting features. 

In addition, the sandbox for the CBDC is now accessible at GitHub, providing an interface to interact with the test network. Further, the test network offers some important features like transferring ERC – 20 tokens, minting and burning.  

Moreover, the main reason to build the new central bank digital currency on Ethereum technology is to present a core and secured framework. In which it enables the functions of issuance, distribution, and destruction of digital central bank money. 

Norway’s Digital Currency on Ethereum 

As the adoption of cryptocurrencies are rising despite the bear market, many countries are taking efforts to build their own national digital currencies. One among them is Norway’s Norges Bank marking a major milestone in developing a new sandbox code on Ethereum technology.  

To dig deep about the interesting features of the CBDC’s sandbox, the structure is in such a way as it acts as an interface for interacting with the test network. More so, it operates batch payments, security tokens, smart contract works and bridges. Furthermore, the sandbox offers unique features like frontend written in React, a filterable overview, and network monitoring tools like BlockScout and Grafana. 

In support to the development, the Norges Bank’s official CBDC partner, Nahmii says, 

“ We are proud to work with Norges Bank and other institutions on this prestigious project to set up new high standards for public-private partnerships.”

In addition, The Norges Bank is in the process of testing various designs to initiate their CBDC for almost 2 years. As a matter of fact, the main focus and priority of the bank is the  “interoperability” accessible for its users, adds Nahmii. 

Moreover, this is not the first time for the Central bank to experiment CBDC tests. But in April 2021 itself, the Norges Bank officially released its plans to conduct the tests with various solutions using different designs.