Numerous organizations from all over the world have been working on the creation of a central bank digital currency (CBDC) for a very long time, including the Norwegian central bank. Norges Bank, however, already has a first operational test environment under its belt, whilst the ECB and the Fed are still in the early stages and working on the feasibility study.
The open source code has been made available on GitHub in association with the business Nahmii Fintech. As a result, programmers from all over the world have access to the CBDC sandbox and may test the digital Norwegian krone prototype. At the same time, making any security weaknesses instantly public and not keeping the source code a state secret should increase public trust in the new technology. As explained by Nahmii:
“In this way, fundamental use cases of token management can be tested. These include the minting, incineration and transfer of ERC 20 tokens.
The sandbox has a front end that provides an interface for interacting with the test network, as well as network monitoring tools. It will facilitate the use of smart contracts and enable access control.”
The foundation for the development was the Ethereum network, which will tomorrow convert from the energy-intensive proof-of-work method to the proof-of-stake technique following years of development.