The Norwegian Central Bank “Norges Bank” think about it, to call its own digital currency. A working group of the Central Bank has recently published a working paper on the topic of digital Central Bank currency in which, inter alia, possible ways or legal consequences will be discussed.
How could Norway make use of a digital Central Bank currency?
The working group has identified three possible use cases for digital currency: one is the provision of a public and a risk-free Alternative to deposits by private banks, as an independent complement to the existing electronic payment transactions as well as securing the existence of a legal means of payment.
From the Paper:
“The Norges Bank is to spend cash, as long as a demand exists. But if the use of cash is decreasing, it could be a digital Central Bank currency is an Alternative to transfer money.“
Digital Central Bank currency can be implemented quickly?
Not at all: The Norges Bank, the adoption of a digital Central Bank currency on a comprehensive socio-economic cost-benefit analysis must be based. Important components of this analysis are the effects on the payment system, financial stability and monetary policy, the need to examine the Norges Bank previously.
At the present time, is not yet certain whether the Norwegian Central call Bank a digital Central Bank currency. There are, as before, clarify some open issues. However, appeared, as yet, not a major Problem, which is a digital Central Bank currency.
Currently, Norway can look to the experience in this area of other countries with a stable financial system. However, in Venezuela, for example, has initiated the Petro – a supposedly Oil-reserves-funded national Cryptocurrency. This should, however, prevent the downward economic spiral of the country. Both Iran and Turkey to think about its own digital currency. Also, the Swiss Federal Council wants to give a study to the risks and opportunities of an own crypto-currency in the order.