Norway refused to develop its own cryptocurrency
The trend towards the creation of an internal government cryptocurrency is becoming more and more popular. However, not all countries decide to invest in digital platforms built on the Blockchain. Such skeptics include a representative of the Bank of the Norway, who said that in the near future the country does not intend to update the main monetary instrument. Thus, experts have virtually ruled out the possibility of creating an internal coin in the next few years. What does this mean for the state economy and how will the refusal to create a coin affect the global cryptoindustry. Let’s figure it out.
Who is behind the statement of Norway
On the territory of Norway, as in the case of most European countries, the Central Bank operates. Its representatives, namely Ayda Walden Bahe, said that the bank is not currently considering setting up its own CBDC. The reason for raising the issue was the diminishing importance of cash. According to current data, on the territory of the state, only 4% of monetary transactions are carried out using cash. The rest of the settlement operations between citizens and organizations are non-cash, digital transactions. And, most interestingly, government representatives are completely satisfied with this state of affairs. In their opinion, cash was, is and remains an important component of the economy.
After all, citizens still keep capitals for unforeseen circumstances, as well as their own savings in cash. This is why the Norwegian state bank is not interested in developing its own digital solution. According to officials, such work requires a lot of checks and assessment of consequences. After all, you must agree that this step is quite serious for the state.
However, it is worth noting that Norway has previously considered cryptocurrency with interest. Financial regulators have studied the possibility of introducing coins at the state level. Then experts analyzed the advantages of the state cryptocurrency as the main alternative to paper money. But it appears that the study did not really show the real benefits of digital assets. However, why is the abandonment of the Norwegian government cryptocurrency so much more important than it seems? More on this in the next section.
Why is Norway’s digital asset important?
It is surprising that an advanced country like Norway is refusing to use cryptocurrency at the state level. Of course, the reason may be a banal misunderstanding of the advantages of a digital asset, however, most likely, we talked about the real disadvantages of cryptocurrency over paper funds. The rejection of cryptocurrency in Norway shows that modern digital projects are far from ideal. It is possible that the government would take a fresh look at the Blockchain and the coins built on it. But, unfortunately, digital tools are not advanced enough at the moment. Thus, we can conclude that there is a need for continuous improvement of cryptocurrencies and internal algorithms of the industry. Over time, crypto funds will undergo major improvements, and then even innovative and modern countries like Norway will find a place for them in the crypto industry.
This event is another confirmation that all novice developers and enterprising individuals should improve their digital savings. The main thing is to stay in the trend of current industry events. Follow the news of the crypto world and Blockchain with us. We publish only high-quality, interesting material. Thanks for attention. Good luck!
