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Norway Wants to Create Its Own Virtual Currency

· in Crypto News, Home
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

Different countries and central banks from all over the world are thinking and analysing the possibility to create their own cryptocurrencies. Now is the time for Norway’s central bank, the Norges Bank, which might launch its own cryptocurrency.

Norges Bank Cryptocurrency

According to an official document released by the bank, there is an intention to develop a virtual currency that could be used as a medium of exchange. The report has 55 pages and it starts explaining that several central banks are considering whether to issue or not a central bank digital currency. 

The bank explains that the technological advances have reduced the use of cash usage. And in order to ensure an efficient and robust payment system, the answer could be a central bank digital currency.

The document explains:

“This report, prepared by a Norges bank working group, provides an overview of aspects that should be given weight in assessing whether Norges Bank should issue a CBDC [central bank digital currency]. A CBDC can be designed in various ways, depending on the desired aims.”

Additionally, the paper mentions that the Norges Bank will continue to issue cash as long as there is demand for it. But as soon as cash usage declines, a local CBDC can be an alternative to deposit money, ensuring confidence in money and the monetary system.

At the moment, there is virtually no international experience to rely on. The efforts of the Petro have been mainly related to a geopolitical aspect and not about a technological aspiration. Other countries like Iran and Russia, are planning similar virtual currencies to the Petro, so as to avoid international financial sanctions and as a way to gather money.

“A CBDC raises complex issues. There is virtually no international experience to draw on. Further analysis is needed to assess the purposes of a CBDC, the types of solutions costs. This is a long-term undertaking.”

Other countries in the world are also thinking about issuing their virtual currencies including the United Kingdom or Canada, but with different intentions compared to Iran, Venezuela or Russia.

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