The beginning of May 2017 definitely provided excellent news for the digital currency community. First, bitcoin officially broke its record as a single coin sold for more than $ 1,400. At the same time, the ether reached a price above $ 80, continuing the spectacular rise of the relatively new digital device. In the process, no one can blame so many individuals, or even companies in this area, who are excited about the near future and what they bring.
But while news from the markets is often positive, there is now a nationwide development related to the unique digital currency. These are not new, but in this case, it is impressive that the actual state of Norway and its national central bank has begun to explore ways to create and launch their own digital currency.
In an atmosphere where many developed nations paradoxically avoid or ignore the digital currency, it seems that one has decided to move on with a different plan. Most elements of this plan are still being hammered, the news still shows that there are places where the idea of using digital currency is not just something that needs to be led to the next decision-making unit.
The key facts below relate to the fact that the Central Bank of Norway is entering the field of blockchain research and development.
Norges digital currency
Norges, the central bank of Norway, recently announced that research into the possibility of issuing its own digital currency is in its infancy. The statement was made by Jon Nicolaisen, Vice President of Norges Bank, who spoke at the Norwegian Academy of Sciences and Letters.
He said there is a clear increase in the number of digital currencies that are widely used today for bitcoin bingo for things like multi-million dollar capital investments made exclusively in cryptocurrency, including bitcoin investments. For this reason, the Deputy Governor said it was important to present the Norges research project in the light of a world where the use of cryptocurrencies occurs regularly.
He added that this kind of monetary value is of particular interest to certain types of users, including factors such as peer-to-peer operating systems and user anonymity. Here, Norges seems to have approached the issue with an interesting dose of pragmatic thinking. In the same statement, Nicolaisen said there are already private blockchains, including bitcoin, that are already on the market and provide these features.
According to him, these may continue to operate even in the event of a complete failure of the banking systems. All you need is an Internet connection and they can continue to work the same, as can systems that are widely used, such as eSport and many other online-only businesses.
Potential digital currency features
Thanks to these realities of the current digital currency domain, Norges Bank has decided to try to imitate some of them for their own project. Therefore, you are considering building a digital currency that your customers can keep in their bank account, so there is no need for an external, external digital wallet.
Another option is for Norges Bank to create an app that allows anonymous payments like cash like traditional transactions. It also appears that the bank is willing to explore even bolder opportunities in its research and will find a model that meets both their development framework and the needs of their customers.
For the time being, both options seem to be a valid path for further exploration and possible pilot projects. Once authenticated, Norges Bank will have no major difficulty in getting the idea to the level of an active product available under its brand name. This would at least be true for the domestic market.
Another central bank initiative
In particular, there is no news for those covering digital currencies and blockchain that a central bank would experiment with this form of FinTech. Currently, several major central banks are working on similar initiatives, including the Central Bank of China, which is also trying to curb domestic bitcoin exchanges . But Norges ’representative continued to state that their efforts are crucial to the future state of the financial ecosystem.
He said electronic money could be a great alternative for many consumers if they didn’t want to deposit money in the form of cash in a traditional bank as the process works today. At the other end of this equation, banks are able to attract customers using the interest rates they offer.
However, Norges Bank is convinced that banks’ ability to generate profits and lend can be significantly affected if new forms of electronic money become widespread. In this simple idea, the full motivation of this central bank can be enforced: change or face potential problems due to global change, whatever it is.
The Norwegian ecosystem
In addition to the intelligent position of the central bank, the whole of Norway has a number of advantages that would facilitate any nationally based digital currency. First, the country’s population is supported by a small but extremely rich state apparatus and a stable social democratic agenda. This would provide a basis for equal access to digital currency, regardless of its form.
Then the country is not in the EU, which allows it to circumvent the problems that Member States may face when such initiatives play a role elsewhere. In addition, the country has a developed and diversified economic system, making these types of FinTech services easily accepted by citizens, especially those living in remote regions where any type of commuting requires a lot of effort.
Here, it can be a huge benefit to further manage your personal or even small business financial management with an online-only tool. With all this targeting Norges Bank, there is no reason to doubt that current research could easily become the world’s first national digital financial instrument.