A crypto company working with Norway’s central bank has released source code for a sandbox created to test digital versions of the Nordic country’s fiat money. The prototype digital krone is built on the Ethereum network, where regulators hope to test various technologies and assess their potential impact on financial stability.
Norges Bank and Nahmii Fintech provided access to the source code of the CBDC sandbox developed for Norway
Norwegian monetary authority Norges Bank and Norwegian company Nahmii AS have released source code for a sandbox for the Scandinavian country’s central bank digital currency (CBDC). The two parties are jointly developing a prototype for a state-issued coin.
The code is now available on Github 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 build a sandbox environment with open source services for digital kroner.
“This will allow testing of basic token management use cases, including minting, burning, and transferring ERC-20 tokens,” explains the company, developers of a layer 2 scaling solution for the Ethereum blockchain.
The sandbox has a front end designed to provide an interface to interact with the test network and a network monitoring tool. It facilitates smart contract deployment and provides access control, Nahmii elaborates.
The company plans to further develop the sandbox’s custom front end while adding more complex use cases such as batch payments, security tokens, and bridges. We plan to provide the project’s second phase to Norges Bank.
Norway’s central bank is one of dozens of monetary policy regulators currently working to develop and issue its own digital currency. The attempt is to establish whether its CBDC is safe and efficient for the public without adversely affecting the stability of the Norwegian krone and the country’s financial system.
When the authorities announced that they were conducting an experimental test to determine whether a digital currency should be issued, they acknowledged the role of cash as an alternative to money in bank accounts. At the same time, they noted that the use of cash is declining and warned that this could undermine its function.
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