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World Affairs, Economy
Mahesh

15/09/22 22:03 PM IST

Norway's central bank to build national digital currency on Ethereum

In News 
  • Norway's Norges Bank, its central bank, hit a major breakthrough in its digital currency efforts as it released the open source code for the country's central bank digital currency (CBDC) sandbox based on Ethereum technology.
CBDC 
  • CBDCs are an electronic form of central bank-backed fiat money.
  • CBDCs can be based on blockchain networks but they necessarily don't need to be on a blockchain.
  • However, Norway's CBDC, it's based on Ethereum.
  • According to the International Monetary Fund (IMF), 97 countries or more than 50 per cent of all global central banks are developing CBDCs.
  • Presently, only Nigeria and The Bahamans have fully launched the CBDCs.
Norway CBDC 
  • Norway’s CBDC sandbox, which is accessible on GitHub, was created to provide user interface (UI) for engaging with the test network.
  • It has features like minting, burning and transferring ERC-20 tokens.
  • The current version of the open code is only accessible to people with necessary credentials.
  • It does not support popular Ethereum wallet Meta Mask.
  • The second phase of the project would involve making the source code accessible to the public.
  • The sandbox has a unique frontend, necessary smart contracts and access controls and network monitoring tools such as BlockScout and Grafana.
  • The frontend displays a filterable overview of the network transactions.
  • The usage of Ethereum cryptocurrency system provided the basic infrastructure required for the creation, transfer and destruction of digital central bank money (DSP).
Source- India Today 

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