Norway Central Bank to decide on digital currency recommendation next year

Norway’s Central Bank, Norges Bank, is set to make a decision on the potential introduction of a digital currency in the coming year. Deputy Central Bank Governor Pal Longva stated that the bank is progressing towards finalizing a recommendation on whether to implement a central bank digital currency (CBDC). While other European countries like Switzerland have made advancements in their own digital currency plans, Longva expressed that Norway’s monetary authority is not concerned and is still evaluating their options. The bank is currently considering whether a retail or wholesale version of the CBDC would be more appropriate for Norway. A retail CBDC would be used by consumers, while a wholesale CBDC is designed for transactions between banks. Longva also highlighted that implementing a retail CBDC could raise complex issues that would require dialogue and collaboration with private banks and stakeholders. Norway has become one of the most cashless societies in Europe, with the majority of Norwegians relying on debit cards and mobile payment apps. The final verdict on the CBDC is anticipated to be reached by the end of 2025.