Norges Bank, the central bank of Norway, has concluded that introducing a central bank digital currency (CBDC) is “not warranted at this time,” marking a clear signal that the country is reconsidering the urgency of retail and wholesale CBDCs.
The central bank said Wednesday that Norway’s existing payment system already offers secure, efficient and low-cost transactions, reducing the need for a CBDC in the near term. However, the bank remains open to launching a CBDC in the future but sees no present conditions that justify a rollout at this time.
“Norges Bank has concluded that introducing a central bank digital currency is currently not warranted,” said Norges Bank Governor Ida Wolden Bache. “The need for such a currency may, however, change in the future.”
Bache added that the central bank will be ready to introduce a CBDC in the future if it becomes a requirement in maintaining and efficient and secure payment system.
Norway shelves CBDC plans after years of experimentation
The bank’s updated stance follows several years of experimentation with both retail and wholesale CBDC models, including token-based settlement tests on blockchain infrastructure.
In 2023, the bank participated in Project Icebreaker, a trial exploring new architectures for retail CBDC transactions across borders. In 2024, Kjetil Watne, project director for Norges Bank’s CBDC project, told Cointelegraph that CBDCs, if issued, will coexist with cash and digital currencies.
However, in its latest statement, the central bank said that while wholesale CBDCs could eventually modernize interbank settlement, the benefits remain unproven, and no mature infrastructure or standards exist to support immediate deployment.
“Many central banks are researching CBDCs, and the Eurosystem is considering the introduction of a digital euro. Relevant off-the-shelf IT systems or standards for such systems do not yet exist,” the central bank wrote.
Norges Bank said that if other central banks introduce CBDCs, it could enable infrastructure collaboration, suggesting that the central bank isn’t entirely shutting down the idea of CBDCs.
It added that it will explore the possibility of using the Eurosystem’s CBDC solutions and standards.
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Digital euro expected to launch in 2029
The European Central Bank (ECB) recently moved to the next phase of the digital euro. It estimated that the issuance of the CBDC may start in 2029, depending on whether a suitable legal framework can be established.
On Oct. 30, the ECB said that if legislation is ironed out in 2026, CBDC pilot exercises could begin in 2027. This puts the Eurosystem in a position to be prepared for a potential first issuance in 2029.
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