According to Deputy Central Bank Governor Pal Longva, Norway’s central bank, Norges Bank, will decide whether or not to launch a digital currency the following year.
Pal Longva, the deputy central bank governor of Norway, stated in an interview with Bloomberg on October 22 that the bank is on schedule to complete a recommendation for introducing a central bank digital currency.
Even though other European nations like Switzerland have already implemented CBDC, he promised that Norway’s monetary authority is still catching up.
The Swiss National Bank extended the pilot for its wholesale CBDC until April 2026 but stated that it would not release a public CBDC.
Longva stated that he is not concerned and that they are still evaluating the suggestion despite other central banks’ expanding intentions for digital currency.
“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,” said Longva in an interview with Bloomberg in Oslo.
Longva added that Norges Bank is currently debating whether to issue a wholesale or retail version of the CBDC. Customers use retail CBDCs, whereas wholesale CBDCs are utilized in bank-to-bank transactions. 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”
However, he pointed out that a retail CBDC might raise difficult questions. As mentioned by Longva, the execution would rely on “dialog and cooperation” with private banks and stakeholders, and the central bank would need to thoroughly assess the problems.
Norway is among Europe’s most cashless societies, according to World Bank data. Debit cards are owned by almost 98% of Norwegians.
In accordance a 2023 Trading Platforms survey, more than 95% of Norwegians pay with mobile applications rather than cash.
In Norway, the use of cash has decreased, although it has been steady. Norges Bank poll conducted at the beginning of this year, 2% of participants made their most recent in-person payment using cash.
After two years of collaboration by a working group, Norges Bank stated in a press release on Dec. 18 that the CBDC pilot was about to begin its fifth phase.
Whether or not Norway introduces a CBDC will depend on the outcome of the fifth phase. The final decision is anticipated to be rendered at the end of 2025, while precise dates still need to be given.
