An official document has been released by Norway’s Central bank (Norge bank) announcing intentions of launching its own cryptocurrency, according to Cointelegraph.
This notice of intent by Norway’s State bank is very much in keeping with current trends showing increasing numbers of central banks looking into the viability of creating national cryptocurrencies. As Bitcoin News illustrated, the adoption of cryptocurrency globally by central banks is still in its infancy but is growing.
The 55-page document, released by the Norge Bank’s working group, referred to this trend, citing the advance of technology moving financial institutions beyond cash money. Norges Bank Governor Øystein Olsen wrote:
“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].”
However, the bank is quick to point out that a central bank digital currency (CBDC) wouldn’t interfere with customers normal banking requirements, as long as demand continues to exist for cash. The working group, which is currently only in its initial stages, stated:
“It is too early to conclude whether Norge Bank should take the initiative in introducing a CBDC. The impacts of a CBDC – and the socio-economic cost-benefit analysis – will depend on the specific design. The design, in turn, will depend on the purpose of introducing a CBDC.”
As NewsBTC points out, while there is no specific law telling Scandinavian banks how to view cryptocurrency, there is anti-money laundering legislation already in place. These laws demand that those offering financial services must follow KYC practices.
Morgan Stanley strategist Sheena Shah released a report on central bank cryptocurrencies this month, focusing on the current situation regarding state adoption of cryptocurrencies globally. Shah explained that although many central banks are considering their own cryptocurrencies, the focus is simply financial stability.
Shah suggests that were emerging cryptocurrencies to be adopted, they would not be Bitcoin or any other public blockchain networks. She believes that a 100% digital system might enable banks to push interest rates into negative territory, a tactic used by banks in the past to spur the global economy.
Another Scandinavian central bank, Sweden’s Riksbank, is currently considering its own cryptocurrency, an e-krona, with the same motivations as its Norwegian neighbor having observed cash use on the decline across the country.
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