Norway’s central bank, Norges Bank, has concluded that the introduction of a central bank digital currency (CBDC) is “not warranted at this time”, giving a clear indication that the country is reconsidering the dire need for retail and wholesale CBDC.
The central bank said on Wednesday that Norway’s existing payment system already offers secure, efficient and low-cost transactions, which could reduce the need for a CBDC in the near future. Still, the bank remains open to launching a CBDC in the future.
Norges Bank Governor Ida Woldenbach said, “Norges Bank has concluded that the introduction of a central bank digital currency is not warranted at this time.” “However, the need for such a currency may change in the future.”
Bache added that the central bank would be ready to introduce CBDC in the future if it becomes necessary to maintain an efficient and secure payment system.
Norwegian shelf CBDC projects after years of experimentation
The bank’s latest stance follows 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 cross-border retail CBDC transactions. In 2024, Kjtel Watne, Project Director of Norges Bank’s CBDC Project, told QuantalGraph that CBDCs, if issued, will remain alongside cash and digital currencies.
In its latest statement, the central bank said that while wholesale CBDCs could eventually modernize interbank settlements, the benefits are unproven, and there is no solid infrastructure or standards to support immediate deployment.
“Many central banks are researching CBDCs, and the Eurosystem is considering the introduction of a digital euro. There are no off-the-shelf IT systems or standards for such systems yet,” the central bank wrote.
Norges Bank said that if other central banks do introduce CBDCs, this would indicate, with infrastructure support, that central banks are not shutting down the idea of CBDCs entirely.
It added that it would explore the possibility of using the Eurosystem’s CBDC solutions and standards.
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The Digital Euro is expected to launch in 2029
The European Central Bank (ECB) recently moved into the next phase of the digital euro. It is estimated that CBDC issuance could begin in 2029, depending on whether an appropriate legal framework can be established.
On October 30, the ECB said that if the legislation is introduced in 2026, CBDC pilot exercises could begin in 2027. This would put the Eurosystem in a position to prepare for a possible first exit in 2029.
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