Norges Bank has delivered a clear verdict on central bank digital currencies, stating their introduction is “not warranted at this time.” The announcement reflects a deliberate pause in Norway’s approach to state-backed digital money.
According to the central bank, the rationale for this stance lies in the high performance of the incumbent payment system. It described the current framework as offering secure, efficient, and low-cost solutions, thereby mitigating the near-term imperative for a CBDC.
The official position was articulated by Governor Ida Wolden Bache, who said, “Introducing a central bank digital currency is currently not warranted.” She was careful to leave room for a policy shift, noting, “The need for such a currency may, however, change in the future.”
Bache affirmed that Norges Bank would maintain the necessary expertise and readiness to launch a CBDC should future circumstances demand it to ensure systemic stability.
The bank’s decision arrives after several years of hands-on experimentation with various CBDC architectures. These trials examined both retail and wholesale applications, often involving blockchain-based settlement systems.
International collaboration, including the 2023 Project Icebreaker which involved cross-border CBDC transactions, contributed to the bank’s research. The project’s findings helped shape the understanding that any digital krone would complement, not replace, current payment options.
