The Norwegian Central Bank To Build Ethereum-based CBDC

The Norwegian Central Bank To Build Ethereum-based CBDC

The Central Bank of Norway, Norges Bank, created a breakthrough in its digital currency efforts, releasing the open source code for the Central Bank Digital Currency (CBDC) sandbox based on Ethereum technology.

 

Norges Bank and Nahmii Fintech Releases CBDC Sandbox Source Code 

Nahmii AS, a crypto company working with the Central Bank of Norway has published the source code for the sandbox created to run the digital trial version of the Nordic nation’s fiat currency. The prototype digital krone is being built on the Ethereum network.  

Norges Bank and the Norwegian company Nahmii AS have announced the source code for the sandbox of the Scandinavian country’s Central Bank Digital Currency (CBDC). The two are working together on the prototype of the state-issued coin.

The source code is now available on GitHub, offered under an open-source Apache 2.0 license, as Nahmii recently announced in a blog post on its website. The fintech was tasked 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.

The sandbox features a front end that has been designed to offer an interface for interacting with the test network and network monitoring tools. It will facilitate the deployment of smart contracts and provide access controls, Nahmii explained.

The company intends to add complex use cases in the future, including batch payments, security tokens, and bridges, while further developing the custom front end of the sandbox. It plans to deliver the second part of the project to Norges Bank by mid-September.

The Central Bank of Norway is among dozens of monetary policy regulators currently working to develop and issue digital currencies. The primary objective of the trial run is to establish the safety and efficiency of the CBDC without affecting the stability of the Norwegian krone and the financial system.