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Norway’s Central Bank, Norges Bank, will decide next year whether it should introduce a central bank digital currency (CBDC).
The bank is said to be on track to finalize its recommendation, as other nations in Europe consider similar plans.
In an interview in Oslo on Tuesday, and as reported by Bloomberg, Deputy Central Bank Governor Pal Longva said: “I don’t think we’re falling behind on CBDC efforts.
“We are in line with many central banks – we are studying complex issues and we have a lot to consider and assess, and there is no urgency as of now.
“On the other hand, we should be prepared to move into this space in close collaboration with other banks.”
The bank is rumored to be looking at both a retail and wholesale version of CBDC, with the latter being designed for transactions between banks and the central bank.
If it’s decided upon as going ahead, a retail version would be used by consumers. In the interview, Longva said: “lately there is a tendency in many central banks to put increased weight on the study of the wholesale approach, that also goes for Norway.”
He said a retail version “raises very complex issues which we need to consider and assess” with this depending on “dialog and cooperation with the private banks and other stakeholders.”
Norway continues its research into central bank digital currency
These comments come just a month ahead of a government deadline for a task force to submit a report on ensuring safe and simple payments, including digital central bank money.
This must be submitted before November 15, with the ultimate decision of whether a CBDC is introduced being in the hands of Norway’s lawmakers.
Other countries in Europe are facing the same questions as to whether to introduce a central bank digital currency, including Norway’s neighbor Sweden.
It was in 2020 when the country’s central bank, the Riksbank, first started investigating a digital complement to cash. A pilot project was initiated, with e-krona created as the solution for a central bank digital currency.
A government inquiry that concluded last year found that the country had no need for it, but the Riksbank said in March it would continue its work on researching the policy and design issues around creating a CBDC.
Switzerland has been focused on the topic too, as they announced in April that they will not be issuing a public CBDC but have extended the pilot for a wholesale version until 2026.
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