Norwegian National Bank Wants to Launch its Own Digital Currency to Support Nominal Money

According to reports in the Nordic press; The Norwegian National Bank claimed that Norges Bank could issue its own digital currency to support nominal money and increase confidence in its treasury policies.

It is said that Norges Bank is starting to work to raise the central bank-supported digital currency; the field studies related to this were made and shared with the readers. It is stated that the central bank stands on at least three different systems. The first of these is a digital currency to be a substitute for money assets in private banks, the second option is aimed to support the nominal money, and the third option is a money to be used in electronic payment systems.

Oystein Olsen, managing director of the Norwegian Central Bank, confirmed the assertions regarding the issue, saying:

“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 and confidence in the monetary system will be needed.”

Alternative Digital Currency

The institution that conducts the research of an alternative currency as a value depository; and in the case of the emergence of this digital currency, there is no restriction on the lending authority of banks and other financial institutions. It was reported that Norges Bank would continue to print paper money as long as there was a demand for the paper, but that it was at a more advanced stage of working at that stage. The following statements were used in the statement:

“It is too early to conclude whether Norges 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.”

Europe Countries Debate the Usefulness of Own Digital Currency

Other countries in Europe continue to debate the usefulness of this option as Norway did. Among the countries that want to make a digital money through the central bank are Sweden’s Riksbank . Riksbank does this after the ever-decreasing use of paper money in the country; as an option on the agenda.

Meanwhile, news reports said yesterday that the Swiss Federal Council is in the process of preparing a study to keep up with the gains of such a thing. Whether or not the Swiss government will raise funds to work on central bank-assisted digital money remains unknown at this time.

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