Applications and Use Cases

Central Bank of Norway Considers BSV Blockchain for Digital Currency


May 05, 2021

Bitcoin Satoshi Vision (BSV) is being considered as a central bank digital currency by the Central Bank of Norway. The bank recently released a report about technical options for digital currency, mentioning BSV as one of the blockchains it is considering.

The bank is seeking a distributed ledger technology (DLT)-powered solution, and BSV is one of the contenders. Created in 2018, BSV forks the Bitcoin Cash blockchain and adjusts it with larger block sizes in order to reduce transaction fees. It is named after Satoshi Nakamoto, a pseudonym for the creator of Bitcoin and its first blockchain.

The Central Bank of Norway announcement represents one of the most significant interests in BSV yet, with the bank remarking that the cryptocurrency is considered a preferred solution by many. In its report, the bank also mentioned the BSV blockchain platform is regularly suggested as a viable option for banking.

“Many of the actors have argued for solutions that are completely or partially based on DLT technology," states the report. "Some have argued that DSP can be added as one program ('smart contract') on an open blockchain such as Ethereum or Bitcoin SV, while others have recommended using private variants of the open blockchains, such as Ethereum or Bitcoin. Some players also have views on how to establish consensus mechanisms that open so that more players can participate in the validation of transactions, at the same time as Norges Bank retains control."

“The report is clear that a CDBC solution must have 'compliance with good IT architecture principles' – i.e. the technology used must have the following characteristics: Security, Capacity, Availability, Interoperability," said Stephan Nilsson, CEO and founder of UNISOT, an Oslo-based blockchain service provider. "They also mention Offline functionality [and] flexibility. These are all hallmark characteristics of #BitcoinSV.”

The bank will continue to review its options before making a decision. The report follows last month's news that the British Treasury and the Bank of England are in talks to unveil a central bank-backed digital currency dubbed Britcoin. The system would be based on a permissioned blockchain based on Ethereum's framework.




Edited by Luke Bellos

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