Ethereum, confirmed home of the Norwegian state cryptocurrency

Fjords on Ethereum – Whether Japan has just announced the abandonment of its MNBC, some countries demonstrate their progress. In fact, the Central Bank of Norway has just announced that it will build the MNBC (central bank digital currency) norwegian on Ethereum.

Norwegian cryptocurrency will be based on Ethereum

On September 9, 2022, the Central Bank of Norway announced that it would build the Norwegian MNBC on Ethereum. More and more states share their work on the development of digital currencies. These efforts bear witness to the growing institutionalization of the field. It seems that no state wants to be technologically backward. In addition, producing these systems makes it possible to better understand them and better tame them.

The Norwegian Central Bank has therefore revealed the source code of its cryptocurrency on GitHub. This sandbox aims to communicate with the test network. Nahmiithe official partner of Bank of Norway, believes that it offers capabilities for creating, burning and transferring ERC-20 crypto tokens.

Norway publishes the source code of its MNBC on GitHub – Source: Twitter

the front end was written in React. Translation: the user interface was coded on a free Javascript library. the aim is to provide a simple interface to interact with the testnet. Role-based access control is ready for the most important operations, like creating and burning tokens.

Nahmii specifies that the MNBC will not take not support MetaMask, the wallet based on Ethereum. Thus, only users with the necessary information will be able to access this interface privately.

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On the advance of Norway and state cryptos around the world

As previously announced, Norway has been testing MNBC since April 2021, with the hope of finding a permanent solution. She wants to test different models for two years. In November 2021, the Central Bank had published a working document referring to different possible MNBC models, including those based on blockchains, such as Ethereum, Bitcoin and Bitcoin SV. For Norway, one of the biggest challenges to note concerning the MNBC is theinteroperability. A challenge detailed by KPMG in its 2021 year-end file.

According to the IMF, no less than 97 countries out of 193, i.e. more than half of the world’s central banks, are exploring and developing MNBCs in July 2022. However, only two countries have fully launched their project of MNBC to date, namely Nigeria and the Bahamas. In September, the IMF had declared that it was working on interoperable MNBCs linking the different MNBCs around the world and allowing cross-border transactions.

According to the IMF, no less than 97 countries out of 193, or more than half of the world's central banks, are exploring and developing MNBCs as of July 2022. However, only two countries have fully launched their MNBC project to date.
Map of the progress of MNBC projects in July 2022 – Source: cbdctracker

Norway is therefore moving towards a national cryptocurrency, like many countries around the world. But the MNBC are far from unanimous and will have to be democratically established, even democratically piloted, if we do not want to see the emergence of totalitarian excesses in the rule of law. Indeed, as you know, the China is the embodiment of dictatorial dangers that could arise from a despotic MNBC. For example, with one click, holders of digital yuan will find themselves deprived of all their funds.

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