Norway Plans to Launch its Own Cryptocurrency

Norway’s Central Bank is considering coming up with its own cryptocurrency. With the increasing adoption of digital payments, usage of fiat currency has been decreasing and the country has been faced with financial trouble due to declining cash usage. Norway has been witnessing more and more digital payments due to its ease and hassle-free nature. Norges Bank confirmed that the decline in cash usage influenced their plan, and they were exploring newer options to restore and improve their monetary system, to make it more efficient.

The Norwegian Central Bank which is known as the Norges Bank revealed its plan through a recently document in which it confirmed the interest in pursuing the cryptocurrency route. The document explains reasons why it is interested in the cryptocurrency market as a viable option for their future monetary system. Norges Bank believes that a virtual currency might be the solution that it needs to facilitate a strong payment system that will encourage confidence in their monetary system.

The country has been experiencing a decline in the use of fiat currencies as people embrace digital payments. Additionally, blockchain technology and the cryptocurrency market seem to be shaping the future of the monetary landscape thus the need to innovate along with the industry.

The Norwegian Central Bank stated the following in its document: “Bank deposits are now the predominant means of payment and must be assumed to be virtually the only alternative if cash usage becomes very low. E-money and crypto-assets are hardly viable alternatives in the near and medium term,”

The Central Bank also points out that a Central Bank Digital Currency (CBDC) is a sensitive issue especially because it is still a relatively new concept that has not been pursued before and thus the lack of experience. However, Norges Bank is still analyzing the cryptocurrency market in order to gain a deeper understanding. Such knowledge will contribute significantly towards leveraging the benefits of a CBDC.