Norway’s Central Bank, Norges Bank, is poised to announce its decision on the potential introduction of a central bank digital currency (CBDC) next year, according to Deputy Central Bank Governor Pal Longva. In an interview with Bloomberg on October 22, Longva stated that the bank is on track to finalize its recommendation regarding the issuance of a CBDC.
Longva emphasized that Norway’s monetary authority is keeping pace with global developments in digital currency, despite other European countries, such as Switzerland, advancing ahead. In April, the Swiss National Bank revealed it would not issue a public CBDC but would extend the pilot phase for its wholesale CBDC until 2026.
In light of growing digital currency initiatives from central banks worldwide, Longva expressed confidence in Norway’s approach, indicating that there is no immediate rush to implement a CBDC. “We are in line with many central banks — we are studying complex issues and have much to consider and assess,” Longva remarked during the interview in Oslo.
Norges Bank is currently evaluating whether to issue a retail or wholesale version of the CBDC. Wholesale CBDCs facilitate transactions between banks, whereas retail CBDCs would be used by consumers. Longva noted a growing trend among central banks to focus on wholesale CBDCs, a direction also being considered by Norway.
He cautioned, however, that a retail CBDC could introduce complex challenges. The central bank will need to conduct further assessments, with implementation relying on “dialogue and cooperation” with private banks and stakeholders.
According to the World Bank, Norway is among Europe’s most cashless societies, with approximately 98% of Norwegians possessing a debit card. A recent survey by Trading Platforms found that over 95% of the population prefers mobile payment apps to cash.
Despite the decline in cash usage, it has stabilized at a low level. A survey conducted by Norges Bank earlier this year indicated that only 2% of respondents used cash for their last payment in a physical store.
In a press release dated December 18, Norges Bank announced that its CBDC pilot is entering its fifth phase after two years of collaborative efforts. The outcomes of this phase will guide the decision on whether Norway will adopt a CBDC, with a final verdict expected by the end of 2025.
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