Norges Bank: No Current Need for Digital Currency, Payment System Sufficient
Norway’s central bank, Norges Bank, has concluded there is no compelling case to issue a central bank digital currency for the time being. The decision puts the brakes on the nation’s journey toward a potential retail or wholesale CBDC.
The bank cited the strength of Norway’s established payment network, which it says already ensures secure, efficient, and affordable transactions for users. This existing capability reduces the immediate pressure to develop a sovereign digital currency, though future developments are still being monitored.
“Norges Bank has concluded that introducing a central bank digital currency is currently not warranted,” stated Governor Ida Wolden Bache. She added a caveat, saying, “The need may, however, change in the future.”
The central bank has committed to staying prepared to act if a CBDC ever becomes a requirement to uphold the integrity and effectiveness of the national payment infrastructure.
This updated conclusion follows an extensive period of exploration. The bank has conducted numerous technical tests on different CBDC models, including those leveraging distributed ledger technology.
Past participation in cross-border trials, such as Project Icebreaker, provided valuable insights. Bank officials have historically suggested that a future Norwegian CBDC would operate alongside existing forms of money, including cash and potentially even assets like Bitcoin or Ethereum.
