The central bank of Norges Bank is considering the possibility of introducing its own digital currency as an addition to cash. This is reported in a working release of the regulator, published on Friday, May 18, writes CoinTelegraph.
The document notes at least three possible scenarios for using such a digital currency: creating a reliable alternative to deposits in commercial banks, legal means of payment in addition to cash and an independent backup solution for electronic payment systems.
"Reducing the use of cash forced the bank to think that in future, new attributes needed to provide an efficient and reliable payment system, as well as confidence in the monetary system," wrote Oystein Olsen, head of the Norges Bank.
The prerequisite for creating its own crypto currency is due to the fact that its use by the Central Bank should not have a negative impact on the ability of banks and other financial institutions to provide loans.
At the moment, Norges Bank has completed only the initial stage of analyzing the need to create a digital currency, and notes that it will continue to issue cash as long as circumstances require it.