The Norwegian central bank, Norges Bank, is set to test various technical solutions for a primal depository financial institution digital currency following years of research.

Norges Depository financial institution officially announced Friday that it will exist conducting CBDC tests over the adjacent two years upon recommendations from an internal working group. "The working grouping is of the stance that the motivation for inquiry into CBDCs has been strengthened. Many central banks are in the process of conveying out similar research, and several are already under way with technical testing," the central bank stated.

According to the declaration, Norges Bank has been involved in CBDC research for the past iv years.

"Central bank cash provides the payment system with a number of important attributes that may be relevant to retain and develop further by issuing a CBDC. Additional knowledge is necessary for us to exist able to decide whether issuing a CBDC is appropriate," governor Øystein Olsen said.

Equally previously reported past Cointelegraph, Norges Banking concern considered launching its own national cryptocurrency dorsum in 2018 in society to "ensure confidence in money and the monetary system."

Norway initiated CBDC inquiry due to a massive refuse in cash usage. The Scandinavian nation is considered to be the earth'south most cashless state with only 4% of the state's payments conducted with banknotes and coins.

Countries the world over are stepping up their efforts to develop national digital currencies. Before this week, the Banking concern of England officially announced the beginning of preliminary CBDC studies that could issue in the creation of a digital pound.