The Central Bank of Norway launched a "sandbox" for testing the state cryptocurrency

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Testing will allow us to “evaluate”various technologies and their associated economic and regulatory environments.” Norges Bank will also determine how much CBDC will help ensure the stability of the Norwegian krone and the financial system as a whole.

The Norwegian Central Bank intends to determine whether the state cryptocurrency will ensure the security, efficiency and attractiveness of the Norwegian kroner payment system for the country's population.

“Cash now plays an important role innational payment system and contribute to the competition of payment solutions, but their use is falling. This may lead to them no longer performing their functions as before. The digital crown can complement cash and provide competition. It will allow maintaining national control over the payment system, ensuring the same attractiveness and security of payments in Norwegian kroner, while not depending on foreign infrastructure providers, including cryptocurrencies and stablecoins,” the Norwegian Central Bank said in a statement.

Various people can take part in testingfinancial institutions and companies. In addition, it is planned to organize various “hackathons” so that anyone can get acquainted with the digital crown. Testing is expected to be completed by summer 2023. 

Interestingly, during the first stagetesting CBDC will be built on the Ethereum network, and the digital crowns themselves will be issued in the form of ERC-20 tokens. The system will be implemented on a testnet using Hyperledger Besu software.

Let us recall that the Central Bank of Norway announced plans to test technical solutions for launching a national digital currency last spring.