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- The deputy governor of Norges Bank, Ida Wolden Bache expressed that cryptocurrencies aren’t a means to payment in Norway
- Bache however, cited that trials of CBDC will continue for 2 more years while mentioning that certain characteristics of cash could be included in CBDC
- Bache also reckons that CBDC could be a great backup plan for banks.
While many regulators are after the crypto markets, figuring out to provide various frameworks to settle the digital tokens, almost all central banks have started with the blockchain models of their decentralized currency, also known as Central Bank Digital Currencies ( CBDC).
While trials related to CBDCs have been taking place all around Europe, The deputy governor of Norges Bank shared some perspective on overall crypto markets & Norway’s CBDC trials.
During her address to the topic, She mentioned that Cryptocurrencies weren’t recognized as a common means to payment in Norway pointing at a secure & effective system of money & confidence of people in a fiat that will retain its value over time. Bache also addressed that the financial body wasn’t enlightened of a company in the country with substantial crypto-asset exposures reflecting in their balance sheets.
While discussing the overall nature of cryptocurrencies, just like other speculators, she pointed at the market’s extreme volatility; however, one distinct difference in her statement in contrast to others was when she questioned if cryptocurrencies were as decentralized as people thought to be. Bache expressed her concerns of a new risk, that was more concealed where power structures may emerge and become difficult to hold accountable.
In a transition towards the ambit of CBDCs, Bache stated that Norway’s currency was considered one of the safest & CBDCs could play a role as the country has some of the lowest cash usage rates.
Bache also addressed various efforts that countries took regarding their own CBDCs, including China & various programs introduced by the International Monetary Fund (IMF).
Speaking of Norway, she suggested that certain characteristics of cash could be experimented with & included in the digital form of the currency.
She also acknowledged that CBDCs could be introduced as a great payment option & a way to boost competition in the markets. She also stated that CBDCs could be a great backup for banks. Furthermore, regarding the future, Bache said that experiments would be carried out on different technical solutions for CBDC for the next two years, where they’ll also analyze various purposes & consequences for a digital currency.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
