As a seasoned crypto investor with a keen eye for global financial trends, I find Norway’s potential entry into the CBDC arena intriguing. Having witnessed the rapid adoption of digital payments in my own investments across the globe, I am not surprised that Norway, one of Europe’s most cashless societies, is considering this move.
According to Deputy Central Bank Governor Pal Longva, the Norwegian Central Bank, Norges Bank, plans to announce its decision on launching a digital currency next year.
In a recent conversation with Bloomberg on October 22nd, Deputy Governor Pal Longva of Norges Bank expressed that they are progressing towards concluding an advisory decision about introducing a digital currency managed by the central bank.
He assured that Norway’s monetary authority is not falling behind on efforts to implement CBDC, even if other European countries like Switzerland have beaten them to it. In April, the Swiss National Bank announced that it will not be issuing a public CBDC, but extended the pilot for its wholesale CBDC until 2026.
Although other central banks are developing digital currency plans, Longva remains unfazed and continues to evaluate their recommendations.
In the same vein as other central banks, we’re currently delving into intricate matters. We have numerous factors to ponder over and evaluate, and at this point, there’s no immediate need for action, according to Longva during his conversation with Bloomberg in Oslo.
As an analyst, I’m also observing that Longva mentioned Norges Bank is currently evaluating if they will introduce either a retail or wholesale variant of their Central Bank Digital Currency (CBDC). Wholesale CBDCs are primarily utilized in inter-bank transactions, whereas the retail version would be accessible for consumer usage.
Recently, it has become common among numerous central banks to place greater emphasis on examining the wholesale approach, and this includes the Bank of Norway as well, according to Longva.
Instead, he pointed out that a retail central bank digital currency (CBDC) might bring up intricate problems. Longva stated that the central bank would require more examination of these issues and any rollout would hinge on collaborative discussions and partnerships with commercial banks and relevant parties.
Based on World Bank data, Norway stands among the continent’s most cashless nations in Europe. A substantial 98% of its residents hold debit cards, and a 2023 survey conducted by Trading Platforms found that over 95% of Norwegians prefer using mobile payment apps rather than physical cash.
Despite a decrease in the usage of cash in Norway, its employment has stayed relatively consistent. A survey by Norges Bank conducted earlier this year found that approximately 2% of individuals utilized cash during their most recent purchase at a brick-and-mortar shop.
According to a press release dated December 18th, Norges Bank has advanced to the fifth phase of its Central Bank Digital Currency (CBDC) pilot project, marking two years of collaboration by a task force. The findings from this phase will play a crucial role in deciding whether Norway will adopt a CBDC or not. Although specific timelines were not provided, a final decision is anticipated towards the end of 2025.
Read More
Sorry. No data so far.
2024-10-23 10:16