OSLO, Norway–Norway's central bank has become the latest to announce it will start testing various solutions for a central bank digital currency.
The move comes as Norway, which describes itself as the world's most cashless country, moves to further decrease cash transactions, which now stand at roughly 4%.
"Norges Bank's research into CBDCs has run for a good four years. A new element moving ahead will be technical testing combined with further analysis of the need for and the implications of introducing a CBDC," the bank said in a statement, according to Reuters.
The central bank added that the tests will continue over the next two years.
"Additional knowledge is necessary for us to be able to decide whether issuing a CBDC is appropriate," Norges Bank Governor Øystein Olsen, said in a statement to Reuters.
‘Complex Issues’
Reuters noted Olsen, in the past, has seemed not as keen on developing CBDCs, saying these "raise complex issues," according to a June 2019 statement. At that time, the governor stressed that Norway has "little international experience to draw on," and added that more research is needed to ensure a secure and effective payment system, Reuters added.
To date, a number of central banks have been exploring CBDCs - with China leading the race - spurred by the cryptocurrency momentum that has rapidly risen as of late, the report noted.