National digital currency using Ethereum: Norges Bank, Norway’s central bank, made a significant advancement in its efforts to develop a digital currency by publishing the open source code for the nation’s central bank digital currency (CBDC) sandbox based on Ethereum technology. This development was made possible by the ongoing mainstream adoption of cryptographic technology.
National digital currency using Ethereum: Key Points
- CBDCs are a type of electronic fiat money backed by the central bank. Although they are not required to be, CBDCs can be built on blockchain networks. However, the CBDC in Norway is built on Ethereum.
- The sandbox is made to provide a way to communicate with the test network.
- The Bank’s official CBDC partner, Nahmii, stated in a blog post that it has also enabled features including minting, burning, and transferring ERC-20 tokens.
- The Ethereum wallet Metamask is not supported by the open source code as of right now.
- The sandbox has a unique interface and network monitoring programmes like BlockScout and Grafana.
- It had already been reported that Norges Bank intended to hold CBDC in April of last year.
National digital currency using Ethereum: CBDCs:
- The International Monetary Fund (IMF) reports that 97 nations, or more than half of the world’s central banks, are experimenting with developing CBDCs.
- According to the IMF, only Nigeria and The Bahamas have fully started their CBDC initiatives thus far.
- The Reserve Bank of India (RBI) announced plans to roll out its CBDC over the course of this fiscal year, but in phases.
- The CBDC will initially be available to wholesale businesses and is created in a way that prevents anonymity.
- In a controlled environment, the nation has started the technological development and early testing of CBDC, according to a recent report by the data analytics company Visual Capitalist.