Norway Shelves CBDC for Now, Citing Strong Payment System
Norges Bank, Norway’s central bank, said Wednesday that issuing a central bank digital currency is “not warranted at this time,” citing the country’s secure, efficient and low-cost payment infrastructure. The bank noted it remains open to a CBDC in the future should conditions change.
“Norges Bank has concluded that introducing a central bank digital currency is currently not warranted,” Governor Ida Wolden Bache said, adding that the need could evolve. She said the bank would be prepared to introduce a CBDC if it becomes necessary to preserve an efficient and secure payment system.
Norway pauses CBDC work after multi-year trials
The updated position follows several years of testing retail and wholesale CBDC concepts, including token-based settlement experiments on blockchain infrastructure. In 2023, the bank took part in Project Icebreaker, which examined cross-border architectures for retail CBDC transactions.
In its latest communication, Norges Bank said wholesale CBDCs could eventually support modernization of interbank settlement, but the advantages remain uncertain and there are no mature infrastructures or standards to enable immediate rollout. The bank noted that while many central banks are studying CBDCs and the Eurosystem is evaluating a digital euro, suitable off-the-shelf IT systems or standards are not yet available.
Norges Bank added that CBDC initiatives by other central banks could create opportunities for infrastructure collaboration. The bank said it will consider potential use of Eurosystem CBDC solutions and standards.
Digital euro projected for 2029
The European Central Bank has advanced to the next phase of the digital euro project and estimates issuance could begin in 2029, contingent on an appropriate legal framework.
On Oct. 30, the ECB said that if legislation is finalized in 2026, pilot exercises could start in 2027, positioning the Eurosystem to be ready for a potential first issuance in 2029.
Stay informed, read the latest news right now!
Disclaimer
The content on TrustsCrypto.com is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are highly volatile, always do your own research before making decisions.
Some content may be assisted by AI and reviewed by our editorial team, but accuracy is not guaranteed. TrustsCrypto.com is not responsible for any losses resulting from the use of information provided.
