Central Bank of Norway Uses Ethereum Layer 2 Solution for CBDC Pilot
2 min read

Central Bank of Norway Uses Ethereum Layer 2 Solution for CBDC Pilot

By News Desk

Norges Bank (the central bank of Norway), is working on a pilot program for a central bank digital currency (CBDC) which utilizes an Ethereum layer-2 protocol called Nahmii.

Nahmii is an Ethereum scaling solution that aims to scale any decentralized app on Ethereum to a global scale, including decentralized finance (DeFi), fintech solutions, NFTs, and supply chain management applications.

According to Nahmii, its greatest breakthrough is called “state pools,” which combine the instant finality of state channels with the pooled security of side chains and rollups.

In a blog post, Nahmii said,

“Following a competitive tender process, Nahmii AS will now build a sandbox environment for Norges Bank as part of their CBDC experimental testing strategy. Norges Bank will use this platform as part of a wider investigation into CBDCs.

Norges Bank will in the experimental testing consider many available technologies including so-called layer-2 blockchain protocols. Nahmii AS are experts in this space, having built multiple scaling solutions for Ethereum already.”

Image via Shutterstock

Nahmii says the sandbox trial is expected to include all major Norwegian banks, which will also benefit from Nahmii AS’s technical expertise.

In a statement, Norges Bank said that Nahmii is responsible for creating a prototype mechanism that will facilitate the issuance, distribution, and destruction of the bank’s CBDC.

“We are planning further development projects based on the same technology,” the bank said. “The technology will be particularly relevant for collaboration with alliance partners (including banks) and as a basis for a sandbox. The plan is for the prototype infrastructure to be made available as open source code – hopefully during the summer of 2022. This will facilitate alliance partners and the public to participate more broadly in the testing.”

Norway, which is believed to be the most cashless society in the world, announced last month that it would be undergoing CBDC trials, which are expected to go on for another two years, though no hard timeline is in place.

Newsletter Inline

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

Latest Posts

Trader Joe Review
Trader Joe Review 2022: Complete Guide to the Top DEX on Avalanche
Trader Joe Review

Trader Joe Review 2022: Complete Guide to the Top DEX on Avalanche

July 2, 2022 30 min read
Huobi Global Review
Huobi Global Review 2022: Good Exchange with DEEP Liquidity
Huobi Global Review

Huobi Global Review 2022: Good Exchange with DEEP Liquidity

June 29, 2022 37 min read
FTX vs FTX US Review
FTX vs FTX US: Which one is BEST for You?
FTX vs FTX US Review

FTX vs FTX US: Which one is BEST for You?

June 27, 2022 14 min read
Bancor Review
Bancor Review: Impermanent Loss Protector?
Bancor Review

Bancor Review: Impermanent Loss Protector?

June 22, 2022 15 min read
Bridge Mutual Review
Bridge Mutual: Insurance for your Crypto
Bridge Mutual Review

Bridge Mutual: Insurance for your Crypto

June 22nd, 2022 22 min read
Serum Review
Serum Review: Solana’s One-Stop DeFi Toolbelt
Serum Review

Serum Review: Solana’s One-Stop DeFi Toolbelt

June 16, 2022 17 min read
Raydium Review: Solana’s DeFi Liquidity Mammoth

Raydium Review: Solana’s DeFi Liquidity Mammoth

June 11, 2022 17 min read

Related Posts

Trader Joe Review
Trader Joe Review 2022: Complete Guide to the Top DEX on Avalanche
Trader Joe Review

Trader Joe Review 2022: Complete Guide to the Top DEX on Avalanche

July 2, 2022 30 min read
Huobi Global Review
Huobi Global Review 2022: Good Exchange with DEEP Liquidity
Huobi Global Review

Huobi Global Review 2022: Good Exchange with DEEP Liquidity

June 29, 2022 37 min read
FTX vs FTX US Review
FTX vs FTX US: Which one is BEST for You?
FTX vs FTX US Review

FTX vs FTX US: Which one is BEST for You?

June 27, 2022 14 min read
Bancor Review
Bancor Review: Impermanent Loss Protector?
Bancor Review

Bancor Review: Impermanent Loss Protector?

June 22, 2022 15 min read
Bridge Mutual Review
Bridge Mutual: Insurance for your Crypto
Bridge Mutual Review

Bridge Mutual: Insurance for your Crypto

June 22nd, 2022 22 min read
Serum Review
Serum Review: Solana’s One-Stop DeFi Toolbelt
Serum Review

Serum Review: Solana’s One-Stop DeFi Toolbelt

June 16, 2022 17 min read
crypto com
Crypto.com Exchange Review 2022: A World-Class Crypto Exchange
crypto com

Crypto.com Exchange Review 2022: A World-Class Crypto Exchange

June 14th, 2022 30 min read