The report shows: as cash use declines, the Norwegian central bank may launch the central bank’s digital currency
Guide: A working group of the Bank of Norway issued a report entitled “Central Bank Digital Currency” (CBDC), which explained that as citizens withdrew from the physical form of money, banks had to consider “some important new attributes to ensure an efficient and robust payment system.” ”
The Norwegian central Bank is preparing for the future, which may issue digital currencies in the event of a declining cash flow in the country.
In view of this possibility, a working group of the Bank of Norway issued a report entitled “Central Bank Digital Currency” (CBDC), which explained that as citizens withdrew from the physical form of money, banks had to consider “some important new attributes to ensure efficient and robust payment systems”. ”
The country’s DNB bank has stopped processing cash, and Trond Bentestuen, executive vice president of the bank’s wealth management and insurance Group, told local media in 2016 that only 6% of Norwegian people used cash every day.
The new report studies the various features and purposes of the CBDC, and presents a number of “worthy further considerations” roles, including alternative programmes as private bank deposits (other than cash), as a standby solution to the standard electronic payment system, and the provision of appropriate legal tender money as a supplement to cash.
The report describes systems based on block chains as “immature,” and further explains that CBDC’s preferred model is “based on accounts”-centrally stored in databases-or “based on value”-distributed on electronic chips such as prepaid cards or SIM cards.
The report concludes that it is too early to judge whether Norwegian banks should take the lead in introducing the central bank’s digital currency. At the same time, the Working Group did not rule out the idea.
It can be said that the Norwegian bank’s consideration is not unreasonable. With the prevalence of cashless payments, society as a whole needs to take into account a variety of factors, including cash-free account security, convenience and so on, as well as the impact on traditional industries.