Norway is globally known as the most cashless country in the world due to less usage of physical cash or currency. A recent survey conducted by Norges Bank disclosed that only 4% of overall transactions were made through physical cash, which got lesser during the COVID-19 lockdown. Now Norway is moving ahead to use a paperless economy. In recent news, Norway has disclosed its next plan to launch Central Bank Digital Currency (CDBC) within a couple of years. It occurred that the Central Bank of Norway is most likely to begin testing technical solutions for a CBDC in the coming two years.
Norges Bank of Norway disclosed its intentions in an announcement that management has made their mind to start dealing in the digital currency due to the modern trend around the globe. As different central banks around the globe are experimenting the digital currency to advance their economic system, and this trend has been proved as a motivational act for Norway to launch the digital currency.
Norges Bank stated that state institution is determined to launch CDBC and heading to the next level as the digital currency will be practically in experimentation and technical testing within the next two years. It was made clear that Norway is more or less already familiar with the digital world as the state is already running with less physical cash and more with e-transactions. It is important to note that Norway’s Central bank is planning in a steady manner and planning to carve out the effective testing plan of CBDC.
Norway’s Long Term Plans Regarding CBDC
Wolden Bache, the deputy governor of the Norges Bank, disclosed their strategic plan that they are not in a rush regarding the launch of the Central Bank Digital Currency (CBDC) as they plan to launch and deal in the effective digital currency. He stated while speaking at the Payments Conference of Norway Finance that physical cash will be diminished or prohibited by the coming fast years, and the decision was in favour of CBDC.
He also added that the bank is carving out the effective and best practical use by experimentation at first and then announcing the use of the digital currency publically. He said that the reason behind the lack of urgency and delayed plans is simple, firstly right now, there is no such compelling need for such currency, and secondly, they will proceed with the well and best strategic plan, beginning with the testing of CBDC in a coming couple of years.