Norges Bank, the central bank of Norway, has determined that the introduction of a central bank digital currency (CBDC) is “not warranted at this time,” signaling the country’s reassessment of the urgency regarding retail and wholesale CBDCs.
The central bank announced on Wednesday that Norway’s current payment system offers secure, efficient, and low-cost transactions, diminishing the immediate need for a CBDC. However, the bank remains open to the possibility of launching a CBDC in the future.
“Norges Bank has concluded that introducing a central bank digital currency is currently not warranted,” stated Norges Bank Governor Ida Wolden Bache. “The necessity for such a currency may, however, evolve in the future.”
Bache emphasized that the central bank will be prepared to implement a CBDC if it becomes essential for maintaining an efficient and secure payment system.
Norway shelves CBDC plans after years of experimentation
The bank’s updated perspective follows multiple years of experimentation with both retail and wholesale CBDC models, including token-based settlement trials on blockchain frameworks.
In 2023, the bank was involved in Project Icebreaker, a pilot exploring new architectures for cross-border retail CBDC transactions. In 2024, Kjetil Watne, project director for Norges Bank’s CBDC initiative, shared with Cointelegraph that CBDCs, if issued, would coexist alongside cash and digital currencies.
In its recent statement, the central bank mentioned that while wholesale CBDCs could modernize interbank settlement, the advantages remain unverified, and there is currently no mature infrastructure or standards available to support immediate implementation.
“Many central banks are investigating CBDCs, and the Eurosystem is contemplating the introduction of a digital euro. There are no suitable off-the-shelf IT systems or standards for such systems at this time,” the central bank articulated.
Norges Bank noted that if other central banks do introduce CBDCs, it could facilitate infrastructure collaboration, suggesting that the central bank isn’t entirely dismissing the concept of CBDCs.
It also conveyed that it will investigate the potential of utilizing the Eurosystem’s CBDC solutions and standards.
Related: ‘European SEC’ proposal sparks licensing concerns, institutional ambitions
Digital euro expected to launch in 2029
The European Central Bank (ECB) has recently advanced to the next phase of the digital euro. It anticipates that the issuance of the CBDC may commence in 2029, contingent upon the establishment of an appropriate legal framework.
On Oct. 30, the ECB disclosed that if legislation is finalized in 2026, CBDC pilot programs could begin in 2027, positioning the Eurosystem for a potential first issuance in 2029.
Magazine: Bitcoin whale Metaplanet ‘underwater’ but eyeing more BTC: Asia Express
