The Central Bank of Norway surprised everyone with its latest research paper. The institution hinted at the Bitcoin SV being chosen for the region’s CBDC (Central Bank Digital Currency).
The report hints at many experts considering BSV as the preferred solution for a DLT-based (Distributed Ledger Technology) CBDC. On page 42, the report mentions BSV next to ETH as blockchain networks under consideration for a CBDC.
While the original report was published in Norwegian, its English translation also emerged shortly after. According to the translated report, many involved parties discussed solutions using partially or completely DLT technology.
Some even argued that the Central Bank’s CBDC could be added as a smart contract on a blockchain like Bitcoin SV or Ethereum SV. On the other hand, some suggested their private blockchain counterparts – Ethereum and Bitcoin.
It is worth noting that several central banks have researched issuing custom CBDCs. Most realized that issuing CBDC on a public blockchain was not feasible despite the added value of open blockchains.
The primary hurdles behind this were:-
- Scalability concerns
- The lack of legal oversight
- The lack of opt-out privacy
- The negative environmental impact of ledgers.
Stephan Nilsson, UNISOT’s CEO, talked about the recent development. As the CEO of a Bitcoin SV-powered company, UNISOT is a primary supporter of the blockchain. Nilsson stated that the UNISOT team expects the Central Bank of Norway to conduct extensive research regarding CBDCs and BSV. UNISOT and nChain have discussed CBDC and its capability on Bitcoin SV with the Central Bank.
The Norges Bank is finally experimenting with testing technical solutions for the same. Once the initial experiments are done, Nilsson will choose one solution after thorough testing.
BSV as a blockchain is highly scalable because of its unbounded block size cap. The property is a big requirement for the Central Bank, with low transaction fees and quick transaction finality.
Seeing how BSV excels at all three fronts, its chances of getting selected for the CBDC are high.