As part of the CBDC exploration, Norges Bank has conducted technical and functional testing of various types of payment scenarios in two technological sandboxes based on blockchain technology. The aim was to gain insight into how this technology can be used to promote a secure, efficient and attractive payment system, and to highlight the benefits, challenges and drawbacks associated with different options. The testing has provided insights into how central bank digital currency (CBDC) can be used in conjunction with other tokenised money and assets, such as tokenised bank deposits and tokenised securities. 

Norges Bank has tested the properties of CBDC and various transaction types in a technological sandbox with two ledgers based on blockchain technology. The two sandboxes are based on two different ledger platforms, connected via a bridge that enables the transfer of tokens (CBDC, tokenised bank deposits, and tokenised securities) between them. The test programme in this exploration phase includes various forms of payments with retail CBDC between individuals, the use of wholesale CBDC for settlement of payments between banks, payments with tokenised bank deposits, with central bank settlement in tokenised reserves, and the use of ledger technology to automate and streamline government debt management.

The code from the technological sandbox has been made public to share knowledge and experience from the experimental testing. By making the code openly available, other central banks and relevant participants can build on this work and use it as a starting point for their own experiments.

The publication is also intended to support further collaboration and open innovation. The code is intended as a learning tool in an early exploratory phase and does not represent a finished solution. An open approach makes it easier for external parties to test, understand and provide input, and helps ensure that Norges Bank is better equipped to assess future choices in line with international developments.

Detailed test report and link to the code