Norway Eyes Digital Currency To Handle Cash Decline

Norway Eyes Digital Currency To Handle Cash Decline

The central bank of Norway has published a report where they discuss the possibilities of launching a digital currency to cope with the lack of cash in the country. There has not yet been a definite decision on whether this will happen or not but Norway is definitely in the race to become the first nation-based digital currency.

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In a report titled “Central Bank Digital Currencies,” the Norwegian central bank, Norges Bank, discusses the possibilities of introducing a digital currency in the country. The reason behind the report is that the use of cash in Norway is diminishing and the bank is now trying to to find a solution to the problem which a digital currency could offer.

In 2016, a report came out in Norway claiming that only 6% of Norwegians use cash on a daily basis and that number is assumed to have dropped significantly since. Also, last year one or the biggest banks in the country, DNB, decided to completely stop handling cash.

The report was quite positive about the idea of having a nation-based digital currency that would act as an extension of the Norwegian krone. However, Norges Bank also clarified that they didn’t see it happening anytime soon. According to the central bank, both digital currencies and blockchain technology are still too immature to be used on a more serious level.

Norway Is Not Alone and Cash Is Becoming Scarce In Scandinavia

For the past year, the neighboring country of Sweden has led a discussion about national digital currencies and the possibility to introduce an e-krona as an extension to the Swedish krona. Likewise, the Swedish central bank is also working on a report covering the subject. In fact, compared to Norway, the situation in Sweden is more severe since the usage of cash keeps dropping to new record lows every year. Moreover, Stefan Ingves, the head of Riksbanken in Sweden has voiced his concerns on several occasions

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