Our relationship with money is changing. Many of us hardly accept physical coins and notes anymore. This has led to both Norges Bank and around 90 per cent of central banks around the world now looking at solutions for what money will be for us in the future. The answer could be digital central bank money (DSP). But whether and how digital cash will be introduced is currently in the study phase. Norges Bank will present a recommendation to Norwegian politicians in a couple of years. Are we going to get a digital version of the Norwegian krone? Illustration taken from Norges Bank’s DSP project. Photo: Norges Bank What is absolutely certain is that our coins and banknotes will not disappear anytime soon. They are protected in the Norwegian Money Act and have an important function related to emergency preparedness. If the internet and telephone coverage disappears, there is no use with Vipps and online bank transfers. A requirement for introducing DSP could, for example, be that they must have characteristics similar to physical cash – they must work ‘offline’. Since no one has decided what it should be, many have started to think what they should be. This is where the award-winning designer Glenn Sæstad (28) from Sola comes in. He believes that this is a golden opportunity to push our society in a greener direction. What if… …we had a system that rewarded you every time you participated in organized volunteering? … your municipality had its own currency with restrictions and benefits based on local needs?… or each citizen had carbon rations every month, like a coupon for CO2 emissions? In Sæstad’s vision, digital cash becomes something more than just digital copies of our physical coins and notes. He wants to use the technology to give DSP several different properties. – Now that we are in a process where we are investigating what this could be, I think it is important to really look broadly and explore all possibilities before we lock ourselves into something, says Glenn Sæstad to news. In his master’s thesis at the School of Architecture and Design in Oslo, Sæstad has explored how DSP can get companies and private individuals to make more climate-friendly choices. This is what you need to know about DSPDigitale Sentralbankpenger, simply explained a digital version of cash. It will be the state that guarantees the value of the money and not private banks. Norges Bank has been working with DSP since 2016. They are now in a phase where they are studying characteristics from the blockchain technology (crypto), privacy and the impact it will have on the Norwegian Money Act. It is up to the Storting to decide whether we will introduce digital cash – and what characteristics the money should possibly have. In the future scenario for Sæstad, money is introduced that can only be used within a certain geographical area, to stimulate local development. Another example is a long-term payment system for the construction industry, so that it pays to have a long lifespan for new buildings. These are ideas that can live alongside the current system of traditional savings and current accounts. But it can also potentially turn upside down what money can be. – Got goosebumps It is these ideas around the money of the future that on Thursday received the badge of honor for innovative design and architecture from Design and Architecture Norway (DOGA). The foundation annually awards prizes to Norwegian businesses and performers who excel. Last year, figures of pain were among the winners, but this year Sæstad is the first and only winner of the badge of honor – a prestigious category that has not been awarded for two years. DOGA describes this year’s winner as a “game changer”. – This project gave the jury goosebumps and opened our eyes. It is extremely exciting, innovative and executed in such a way that it really inspires action, says jury leader for the DOGA brand, Behnam Farazollahi. The head of the jury believes the award winner depicts a future where the use of digital money can contribute to a meaningful change for the whole of society. – Shaping the monetary system to become more sustainable can really have an enormous influence on how we can realize the green shift. Is Norway ready for big and green ideas? The young designer believes we must dare to think big. Photo: Glenn Sæstad Norges Bank: – Fun and inspiring How far one is willing to go with digital money is ultimately up to the Storting. – It is not the case that everything I have outlined in my thesis is something that should necessarily be found. The aim has been to create a discussion about what this has the potential to become, says Glenn Sæstad. Should we introduce digital cash? The designer himself has been in close contact with Norges Bank during the work on the master’s thesis on DSP. There, he has had the opportunity to call for more focus on sustainability in the investigation. Director Torbjørn Hægeland at Norges Bank says this collaboration has been fun and inspiring. – We would like to be allowed to congratulate Glenn Sæstad on the DOGA award. With his design background, Glenn has a different angle and perspective on DSP than what we economists like to have, and that can help shed light on questions we might not have thought about. Torbjørn Hægeland is director of financial stability at Norges Bank. Photo: Stian Lysberg Solum / Stian Lysberg Solum Hægeland says that they spend a lot of time discussing thoughts and ideas with external people from many different environments. – In order for us to be able to give the best possible advice on DSP, the dialogue with external parties is absolutely crucial. This is very valuable to us, but it is not necessarily a given that all the ideas that come up say so much about what it will look like in the end. The director emphasizes that it has not yet been decided that we will introduce digital cash. – Our mission as a central bank is to help you to be able to pay efficiently and securely in Norwegian kroner in the future as well. Hungry for more cultural matters? Check these out:
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Glenn (28) believes digital money can help save the planet – receives prestigious award – news Culture and entertainment
