- The committee has also requested the lawmakers to develop some mandatory regulatory substruction for future adoption and expansion.
- The survey reveals that Norway is one of the most cashless countries in Europe and only 2% of testifiers used cash for the majority of their in-person transactions.
- The research for CBDC has recently entered the fifth phase, and the final decision to implement is expected by the end of 2025.
On November 15, Bloomberg, a leading international media outlet reported that the Norwegian advisory committee has demanded against adoption of a state-controlled digital currency which was to be adopted as soon as possible. The report has also quoted the notice of the committee which was presented in front of the Finance Minister of Norway, Trygve Slagsvold Vedum.
The committee has also requested the lawmakers to develop some mandatory regulatory substruction for future adoption and expansion. Also, the value of cash in the market is acknowledged by the committee by stating that it is an accessible and secured payment method.
However, it quoted that a central bank digital currency can be proved as a suitable tool for protecting these considerations in the future.
What does the report suggest?
On June 5, Norway released a retail payment services report in which it mentioned that Norway is among such countries having the highest annual use of payment cards per inhabitant. Most of the card payments were made at shops such as restaurants, vending machines, hairdressing salons, and also public transport.
According to the survey, around 20% of payments at a physical point of sale were made by different mobile payment platforms. The survey further reveals that Norway is one of the most cashless countries in Europe and only 2% of testifiers used cash for the majority of their in-person transactions.
Other country’s stance over CBDC
The same action has been taken in Sweden where the government’s examination and survey concluded that there is no swift need for an e-krona. The government had also asked Riksbank to review and revise its plans.
Talking about South Korea, it has initiated a CBDC pilot collaborating with seven major banks. The Financial Services Commission along with the Bank of Korea and the Ministry of Science and ICT has permitted the program to investigate the use of CBDC-based tokens for public transactions.
Adoption may be expected by 2025
By 2025, Norges Bank has to present its recommendations to policymakers related to the adoption of CBDC. The recommendation will mainly include whether CBDC will be adopted by the country or not.
The Deputy Governor of the Central Bank, Pal Longva has commented that the bank is keenly monitoring the retail and wholesale models of CBDC and after this, with finally gaining resistance on a global level for its application in interbank transactions.
Now, the research for CBDC has set foot in the fifth phase recently and the final decision on implementation can be expected by the end of the next year. However, the exploration has continued for the past two years.
