A crypto company working with the central bank of Norway has published the source code for the sandbox created to trial the digital version of the Nordic nation’s fiat currency. A prototype digital currency is currently being developed on Ethereum. The regulator hopes to evaluate various technologies as well as the impact of financial stability.
Norges Bank and Nahmii fintech provide access to source code for the CBDC Sandbox developed for Norway
Norway’s monetary authority, Norges Bank, and the Norwegian company Nahmii AS have made public the source code for the sandbox for the Scandinavian country’s central bank digital currency (CBDC). Both are working jointly on the prototype state-issued coin.
Nahmii announced that the code was now accessible on Github and available under an Apache 2.0 open-source license. The fintech’s main task is to create a sandbox environment with open-sourced services for the digital krone.
“This allows for the testing of basic token management use cases, including minting, burning and transferring ERC-20 tokens,” explained the firm, which is a developer of a Layer-2 scaling solution for the Ethereum blockchain.
It features a frontend that allows users to interface with the network and monitoring tools. Nahmii explained that it will allow smart contracts to be deployed and control access.
In the future, the company plans to expand the use case for complex transactions, such as batch payments and security tokens. It also intends further development of the custom frontend to the sandbox. Norges Bank will receive the second component of the project in mid-September.
Norway’s central banking system is just one of the many regulators of monetary policy who are working on their digital currency development and issuance. The trials are meant to establish whether its CBDC will be safe and efficient for the public without negatively affecting the stability of the Norwegian krone and the nation’s financial system.
The authority recognized the importance of money as an alternative to bank accounts when it said it was conducting experiments to see if digital currencies should be created. However, it warned that declining cash usage could lead to the loss of its function.
What do you think Norway’s future plans are for a central bank to issue digital currencies? Leave your comments below.
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