According to a report uploaded by the Central Bank of Norway, known as Norges Bank, it could be ready to develop its own cryptocurrency ‘to ensure confidence in money and the monetary system.’
The report, prepared by a Norges Bank working group, investigates aspects they believe should be considered when assessing the feasibility of a central bank digital currency (CBDC). The bank wrote:
“… A decline in cash usage has prompted us to think about whether at some future date a number of new attributes that are important for ensuring an efficient and robust payment system and confidence in the monetary system will be needed. If the answer is yes, a CBDC may be an appropriate measure for remedying weaknesses that may otherwise arise.”
The report states that a CBDC could provide customers with an alternative means to store assets. According to Norges bank, the foundation of a CBDC must also not interfere with the ability of the bank and other financial institutions to provide credit. Norges Bank will reportedly continue to issue cash as long as there is demand for it.