Ethereum Is Used by Norwegian Central Bank to Create a National Digital Currency

by Eva Fox September 12, 2022

Ethereum Is Used by Norwegian Central Bank to Create a National Digital Currency

Ethereum continues to spread and infiltrate daily operations. The infrastructure prototype for Norway's central bank digital currency is based on Ethereum, which Norges Bank has officially announced.

Norway's central bank has reached a milestone in digital currency efforts by releasing open source code for the country's central bank digital currency (CBDC) sandbox. The sandbox, available on GitHub, is intended to provide an interface for interacting with the testnet, including features such as minting, burning, and transferring ERC-20 tokens, the Norges Bank’s official CBDC partner Nahmii said in a blog post.

In addition to deploying the appropriate smart contracts and access controls, the Norges Bank sandbox includes a custom frontend and network monitoring tools (BlockScout and Grafana). The frontend also shows a filterable summary of transactions on the network. Written in React, the sandbox frontend is designed to offer a clear and intuitive interface for interacting with the test network. Role-based access control is in place for important functions like minting and burning tokens. Please note that this version of the code is only suitable for keystore files and does not support MetaMask, which is by design.

The current version of the Norges Bank sandbox network sits behind basic authentication and is only accessible by users with the appropriate credentials. Transactions on the test network are therefore private. Further sandbox development includes more complex and interesting use cases, such as batch payments, security tokens, and bridges. This involves custom smart contract work, alongside additional frontend development. Nahmii expects to deliver the second part of the project to Norges Bank by mid-September, with the source code likely to be made publicly available soon afterward.

© 2022, Eva Fox | Tesmanian. All rights reserved.


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Article edited by @SmokeyShorts; follow him on Twitter

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