- Norges Bank of Norway will make its final decision on introducing a CBDC by 2025.
- The deadline for the government task force to submit a report is on Nov 15.
The central bank of Norway, Norges Bank, is on potential research to launch central bank digital currency (CBDC). The decision is to be finalized by 2025, as stated by Deputy Central Bank Governor, Pal Longva.
The nation is in the pilot phase of CBDC exploration and Norway is among 134 nations planning to delve into this financial innovation. Norges Bank has released its insights from the fourth phase of CBDC trials. The findings concluded that a retail CBDC was unnecessary at the time.
A retail CBDC would be appropriate for everyday public use, allowing users to conduct transactions using digital currency. On the other side, a wholesale CBDC would be limited to financial institutions to facilitate secure and efficient transactions between the central bank and other banks.
Moreover, the Norges Bank has progressed to the fifth phase of its research into wholesale CBDC applications. The bank aims to make a final recommendation by 2025 by finishing the phase. However, Pal Longva emphasized that there is no urgency to accelerate the efforts, despite the European Central Bank’s preparations for a potential CBDC rollout.
Longva’s opinions coincide with the upcoming November 15 deadline for a government task force to submit a report on improving the payment systems in Norway. It further includes recommendations for simple and safe payment mechanisms, incorporating digital central bank money.
The final decision on whether Norway will introduce CBDC lies with the country’s lawmakers. The outcome of the discussions will determine the future of digital currency in the form—retail or wholesale.
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