Collins J. Okoth
Norway’s financial task force has warned against introducing central bank digital currency. It recommends policymakers to establish a strong regulatory framework for a safer future rollout.
On 15th November a Bloomberg report shared the Norwegian committee’s recommendation for steady and slow adoption of the CBDC. The report which was submitted to Trygve Slagsvold Vedum, Norway’s Finance Minister, propelled the policymakers toward the regulatory approach.
The report mentions that a “central bank digital currency may in the future be a relevant instrument for safeguarding these considerations”. However, payments through cash are still more secure and accessible.
Norway’s strategy reflects Sweden’s approach
Sweden also has the same stance as the recommendation made by Norway’s task force. The government of Sweden appointed an inquiry which concluded that the transition towards e-krona is not urgently needed. They warned the Riksbank to reconsider the plans.
In 2025, the Bank of Norway is set to deliver a plan of its own regarding the implementation of CBDC and its format.
While the wholesale approach is already attracting attention globally for its role in interbank transactions, Pal Longva says the bank is evaluating CBDC’s retail and wholesale models.
