Norway's central bank to test digital krone

by in Cryptocurrency News

CBDC

Norway is on the list of countries that are developing a national digital currency (CBDC).

However, unlike China, the authorities of this European state decided to initially study the potential of the token and test it within a separate economic zone. The Central Bank announced large-scale tests of the digital krone.

Based on the results of the testing, the regulator will determine the degree of influence of CBDC on the banking sector in Norway.

Trending: ECB President Concerned that Crypto Can Affect CBs Negatively

The press service of the Central Bank emphasized: "The digital version of the crown can complement cash and create conditions for competition. The CBDC will help maintain control over the financial sector and make payments affordable and attractive."

The Norwegian authorities want to complete testing of the innovative tool by the summer of 2023.

It is known that the infrastructure for the digital crown is being created on the Ethereum blockchain. CBDC will be issued in the form of an ERC-20 token.