Norway’s central bank, Norges Bank, concluded that issuing a central bank digital currency (CBDC) is “not warranted at this time,” highlighting the efficiency, security, and low costs of the existing payment system. Governor Ida Wolden Bache emphasized that while a CBDC is unnecessary now, the bank remains prepared to implement one if future conditions require it to maintain an effective financial infrastructure.
The updated stance follows several years of testing, including Project Icebreaker in 2023, which explored cross-border retail CBDC architectures. While wholesale CBDCs could modernize interbank settlement, Norges Bank cited unproven benefits and the absence of mature infrastructure or widely accepted technical standards as barriers to immediate deployment.
Norway’s approach contrasts with the European Central Bank’s digital euro plans, which could see pilot programs start in 2027 and potential issuance by 2029. The ECB’s timeline underscores the gradual adoption of CBDCs across Europe, while Norges Bank’s measured stance reflects confidence in domestic payment rails and a cautious, data-driven approach to digital currency adoption. The central bank maintains flexibility to adjust its position as technological and regulatory conditions evolve.
