14 September 2022
A crypto company working with the central bank of Norway has published the source code for the sandbox created to trial the digital version of the Nordic nation’s fiat currency. The prototype digital krone is being built on the Ethereum network and the regulator wants to test various technologies and evaluate the potential impact on financial stability.
Norway’s monetary authority, Norges Bank, and the Norwegian company Nahmii AS have made public the source code for the sandbox for the Scandinavian country’s central bank digital currency (CBDC). The two are working together on the prototype of the state-issued coin.
The code is now available on Github, offered under an open-source Apache 2.0 license, Nahmii recently announced in a blog post on its website. The fintech’s main task is 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 frontend, which 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 detailed.
The company intends to add complex use cases in the future, including batch payments, security tokens and bridges, while further developing the custom frontend 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 their own digital currencies. The trials are meant to establish whether its CBDC will be safe and efficient for the public without negatively affecting the stability of the Norwegian krone and the nation’s financial system.
When it announced it is conducting experimental testing to determine if a digital currency should be issued, the authority acknowledged the role of cash as an alternative to bank account money. At the same time, the bank pointed out that the use of cash is declining and warned this could undermine its functions.
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