Norges Bank has decided not to move forward with a central bank digital currency (CBDC) because current national payment services are functioning well in terms of reliability, speed, and cost.
The central bank maintains the ability to act on digital currency if it ever becomes necessary to preserve a strong and secure payment network.
Governor Ida Wolden Bache stated that while the option remains open, there is no immediate requirement to implement a CBDC.
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Investigations and trials related to both retail and wholesale CBDCs have taken place over the past few years. This included involvement in blockchain experiments and the Project Icebreaker initiative, which tested potential setups for cross-border retail digital currency payments.
Despite these efforts, Norges Bank found that the current infrastructure and standards for CBDCs are not yet mature enough and that the positive effects are not certain.
The bank continues to consider working with other institutions and will monitor the Eurosystem’s further development of its digital euro initiative. If other central banks decide to launch their own digital currencies, the Norwegian central bank may consider adopting some of the same systems or standards as the digital euro in the future.
Norges Bank’s approach centers on maintaining the safety and efficiency of the existing payment solutions.
The South African Reserve Bank released a report on November 27 stating there is no immediate demand for a retail central bank digital currency (CBDC) in South Africa. What does the report say? Read the full story.
