The central bank of Norway, Norges bank, is looking to possibly develop its own cryptocurrency as a way of enhancing its monetary infrastructure. The institution released a working paper on May 18th that sheds light on the details, and investigates the properties of digital currency technology.
The 55 internet pages document front web site stated the actuality that different Central Banking institutions all around the globe are taking into consideration no matter if to develop a CBDC [Central Bank Digital Currency] or to proceed with the regular use of fiat forex as a medium of exchange.
“The existence and scope of a CBDC must not impair the ability of banks and other financial institutions to provide credit,” the document explains.
The authors of the report discuss three possible central bank digital currency applications:
- The “introduction of a reliable alternative to deposits in private banks,”
- A “suitable legal tender as a supplement to cash,”
- An “independent backup solution for electronic payment systems.”
The write up also mentions that a state-backed digital currency could help “ensure confidence in money and the monetary system.” According to the report,
“Technological advances have brought this issue to the fore. 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 [should be taken into consideration].”
Even so, the report also mentioned that in as considerably as it is thinking of producing its have digital currency, that it won’t hinder them from issuing dollars to the public as very long as there is a need for it. Norges executives have stated that they will continue to supply cash to clients where a demand for it continues.
Also Read: Facebook May Launch It’s Own Cryptocurrency
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