While hard-cash is on the wane, Norges Bank is considering introducing online, ‘virtual’ banknotes, a new type of electronic money.
Today we use money in two forms, which are primarily physical banknotes issued by Norges Bank, and that called ‘deposited’ money, which is money in the bank that we never actually hold in our hand and handle physically.
The ‘deposited’ variant dominates as payment, as we draw our bank cards more often than we use coins and banknotes from our purse or wallet.
Consider therefore, the central bank as a third variant, writes Aftenposten. Online notes will be electronic, therefore not actually existingin reality, but should, in principle, act as current cash and will be issued by Norges Bank if they become a norm.
‘Confidence in the money is crucial to enable it to function as intended. In modern times, the central bank has ensured this’, said the central bank’s governor, Øystein Olsen.
Net banknotes (e-money) can be made legal tender, meaning that stores and others will be obliged to accept them, in keeping with traditional cash, and they can potentially be designed in such a way that it will still be possible to pay anonymously.
Today’s electronic payments leave traces, and privacy concerns are a major argument against using them for those who oppose a cashless society.
Trade branch Finance Norway (Finans Norge) is familiar with the work taking place and say they await concrete initiatives, and they also take note of what is happening elsewhere in the world.
Source: NTB scanpix / Norway Today