The Norwegian financial task force has recommended a slow and steady approach to introducing a central bank digital currency (CBDC), emphasizing the importance of establishing a strong regulatory framework.
Recommendations of the Norwegian Financial Task Force
On November 15, a Bloomberg report highlighted the Norwegian committee's recommendations submitted to Norway's Finance Minister. The report suggests a regulatory approach for gradual CBDC implementation, with a focus on the security of traditional cash payments.
Sweden's Experience in the Context of CBDC
A Swedish government inquiry concluded, similarly to Norway, that an urgent transition to digital currency is not necessary. The government warned the Riksbank to reconsider its plans for e-krona implementation.
Future Plans of the Norwegian Central Bank
In 2025, the Bank of Norway is expected to present its own plan for implementing CBDC and its format. The bank is evaluating both retail and wholesale models of CBDC, which are gaining global interest.
Norway, following Sweden's lead, opts for cautious CBDC introduction, focusing on regulation and security.
