The Norwegian Central Bank has reached a major milestone in digital currency efforts, publishing the open source code for the country’s central bank digital currency (CBDC) sandbox.
Available on GitHub, this sandbox is designed to provide an interface to interact with the testnet, enabling functions such as minting, burning, and transferring ERC-20 tokens, Nahmii, the official CBDC partner of Norges Bank, said in a statement. your blog post.
Nahmii stressed that the current version of the code is not compatible with the main Ethereum wallet, MetaMask, by design, and is only accessible privately by users with the proper credentials.
In addition to implementing the proper smart contracts and access controls, the Norges Bank sandbox includes a custom frontend and network monitoring tools such as BlockScout and Grafana.. The interface also displays a filterable summary of transactions on the network, Nahmii noted.
Norges Bank took to Twitter on Friday to to mention that Norway’s CBDC prototype infrastructure is based on Ethereum technology.
The central bank had already referenced Ethereum in a CBDC-related blog post in May. Norges Bank stated that the Ethereum cryptocurrency system is expected to provide a “core infrastructure” for the issuance, distribution and destruction of central bank digital money, which is also called DSP. “The prototype will be used to test a number of important features for DSP,” the bank said.
As previously reported, Norges Bank officially announced its plans to conduct DSP trials in April last year, hoping to find a preferred DSP solution by testing different designs over a two-year period.
In November 2021, the central bank issued a working document that referenced potential CBDC designs, including those based on blockchains such as Ethereum, Bitcoin, and Bitcoin SV. Norges Bank stressed that interoperability was one of the most important issues when considering various technical solutions.
The news came amid the release by the International Monetary Fund of a report indicating that 97 countries, or more than half of the world’s central banks, were exploring or developing CBDCs by July 2022.. On the other hand, only two countries have fully launched CBDC projects to date, including Nigeria and the Bahamas, according to the IMF.
In September, The IMF said it had been working on a project related to an interoperable CBDC platform that would connect multiple global CBDCs and enable cross-border transactions.
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