Norway’s central bank is on track to decide by 2025 whether to adopt a central bank digital currency (CBDC), but officials stress there’s no urgency. Despite Norway’s cashless society, with only 2% using cash, the bank is carefully studying both retail and wholesale CBDC options, emphasizing complex issues and the need for collaboration with other central banks and private institutions.

Norway’s Central Bank Confident It’s on Track with Digital Currency Plans

Norges Bank, Norway’s central bank, remains on track to deliver a recommendation on whether the country should adopt a central bank digital currency (CBDC) by 2025. Speaking in Oslo on Tuesday, Deputy Central Bank Governor Pal Longva emphasized that there is no rush, despite other countries like Switzerland moving forward with CBDC plans.

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.

However, he added that Norway should be ready to advance when the time comes, stating, “On the other hand, we should be prepared to move into this space in close collaboration with other banks.”

Despite Norway being one of the world’s most cashless societies, with only 2% of citizens using cash for payments, Norges Bank is thoroughly examining both retail and wholesale versions of CBDCs.

Longva highlighted the growing focus on the wholesale approach, used for transactions between banks, but noted that a retail version presents “very complex issues” requiring cooperation with private banks. As the government prepares to submit a report on secure digital payments by November, the final decision on a CBDC lies with Norwegian lawmakers.