Investing.com - Norway's central bank says a decline in the use of cash has it considering whether it should create a digital currency.According to a report by the bank, the currency could serve three functions: as a reliable alternative to deposits at private banks; legal tender as a supplement to cash; and as an independent backup solution to electronic payment systems.Though a digital currency has appeal, the bank stressed that it should not interfere with the ability of the bank and other financial institutions to provide credit.The central bank report says authorities are only in the initial stage of studying the possibility of a digital currency, but they have yet to identify any issues that would rule it out.Sweden and China are both studying the introduction of a central bank digital currency. Japan's central bank recently rejected the idea.