Norges Bank has been exploring CBDCs since 2016. Low cash usage, new technical options, and the potential for the formation of new private money and payment systems are key motivators for this research. The key question is whether the establishment of a retail and/or wholesale CBDC is required to ensure that the Norwegian krone remains a secure, efficient, and appealing method of payment in the future.
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Norges Bank has published Financial Infrastructure Report 2024. The Report highlights research undertaken by bank in area of CBDC.
Norges Bank is evaluating whether a central bank digital currency (CBDC) is an appropriate mechanism for enabling access to a universally accepted means of settlement while simultaneously encouraging responsible innovation.
Both retail and as well as wholesale application of CBDCs are being studied. Tokenisation and settlement methods for central bank money are gaining international interest.
The Financial Stability Report 1-2024 is published today. https://t.co/nUGvfflIc5
— Norges Bank (@NorgesBank) May 8, 2024
In 2023, Norges Bank completed an exploration phase that included experimental testing of various
Norges Bank will examine the opportunities provided by a CBDC, as well as the implications of implementing various types of CBDC, from now until 2025, and will test and assess potential solutions.
More information, collaboration, and standards are required because worldwide CBDC development is still in the experimental and impact evaluation stage.
Norges Bank has been exploring CBDCs since 2016. Low cash usage, new technical options, and the potential for the formation of new private money and payment systems are key motivators for this research. The key question is whether the establishment of a retail and/or wholesale CBDC is required to ensure that the Norwegian krone remains a secure, efficient, and appealing method of payment in the future.
Sandboxes have also been established for the Bank’s fundamental retail and wholesale CBDC infrastructures.
Between 2021 and 2023, Norges Bank completed a phase of its exploration project that included experimental testing of technical solutions, analysis of payment system scenarios, evaluation of the implications for liquidity management and monetary policy, and a review of the legislative changes required for CBDC implementation.
Norges Bank also communicates with other central banks and international organisations that research CBDCs, and the Bank benefits from the sharing of information and analysis.
As the worldwide CBDC initiative is still in its early stages, more information, collaboration, and standardisation are needed.
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