A crypto company working with Norway’s central bank has published source code for a sandbox created to test a digital copy of the Nordic nation’s fiat currency. Prototype Digital Krone is being built on the Ethereum network and the regulator wants to test different technologies and evaluate their impact on financial stability.
Norges Bank, Nahmii Fintech provide source code for CBCC sandbox developed for Norway
The Norwegian Monetary Authority, Norges Bank and Norwegian company Nahmi AS have released the Scandinavian country’s central bank’s digital currency (CBDC) hash code. The two are working together on a government-issued coin prototype.
The code is now available on Github, provided under the open source Apache 2.0 license, Nahmi announced in a recent blog post on his website. FinTech’s primary function is to create a sandbox environment for digital cryptocurrency open source services.
“This allows for the testing of basic token management use cases, including withdrawing, burning and transferring ERC-20 tokens,” explained the firm, which is the developer of the Layer-2 scale solution for the Ethereum blockchain.
The sandbox features a front-end and network monitoring tools designed to interact with the test network. Smart contracts facilitate deployment and provide access controls, Nahmi detailed.
The company intends to add more complex use cases in the future, including group payments, security signs and bridges, while further developing the custom frontend of the sandbox. It plans to deliver the second part of the project to Norges Bank in mid-September.
Norway’s central bank is one of dozens of monetary policy regulators currently working to develop and issue their own digital currency. The tests are aimed at ensuring that his CBDC is safe and efficient for the public without negatively impacting the stability of the Norwegian krone and the country’s financial system.
Stating that it is conducting a pilot test to determine whether digital currency should be issued, the official acknowledged the role of cash as a substitute for bank account money. At the same time, the bank pointed out that the use of cash is decreasing and warned that this could weaken its operations.
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