Norwegian central bank uses Ethereum to build a digital currency

With the publication of the open source code for the nation’s central bank digital currency (CBDC) sandbox, Norway’s central bank has achieved a significant milestone in its attempts to promote digital currencies, as reported by Cointelegraph.

As per the Cointelegraph, the sandbox, which is accessible on GitHub, was created to provide a user interface for engaging with the test network, enabling features like minting, burning, and transferring ERC-20 tokens, according to Nahmii, the Norges Bank’s official CBDC partner.

Nahmii emphasised that the current version of the code is only privately accessible by people with the necessary credentials and does not by design support the popular Ethereum wallet MetaMask.

The Norges Bank sandbox contains a unique frontend, relevant smart contracts, and access controls, as well as network monitoring tools like BlockScout and Grafana. According to Nahmii, the front end also displays a filterable overview of network transactions. Last Friday, the Norges Bank mentioned on Twitter that Norway’s CBDC prototype infrastructure is built using Ethereum technology, Cointelegraph noted.

The central bank previously mentioned Ethereum in a blog post about the CBDC in May. According to the Norges Bank, the Ethereum cryptocurrency system is anticipated to offer a “fundamental infrastructure” for the creation, transfer, and destruction of digital central bank money, or DSP. The bank stated that “the prototype would be used to test a number of the key features for DSP.”

As was previously mentioned, the Norges Bank formally declared its intention to carry out CBDC tests in April of last year. The bank anticipated that after two years of testing various designs, it would have identified a suitable CBDC option, as reported by Cointelegraph.

Also Read: Binance clears its position; removes off-chain fund transfer with WazirX

Follow us on TwitterFacebookLinkedIn