Norwegian CBDC Task Force Urges Patience Despite Record-Low Cash Usage

In a cautious approach to digital currency adoption, a Norwegian government-appointed expert committee has advised against rushing into implementing a central bank digital currency (CBDC), despite the country’s position as one of the world’s most cashless societies, Bloomberg reported Friday.

The advisory group, established in May 2023, submitted its findings to Finance Minister Trygve Slagsvold Vedum, emphasizing that while immediate implementation isn’t necessary, groundwork for future regulatory frameworks should begin. “The committee doesn’t currently see a need to introduce digital central bank money for reasons of financial inclusion, privacy or emergency preparedness,” the report stated, while keeping the door open for future consideration.

Norway’s stance aligns with neighboring Sweden, where a similar government inquiry last year suggested the Riksbank reconsider its e-krona plans. This Nordic approach contrasts sharply with recent developments in South Korea, where seven major banks have already launched a CBDC pilot program.

Recent data from Norges Bank underscores the country’s rapid shift away from physical currency, with just 2% of Norwegians reporting cash use in their most recent point-of-sale transactions. Despite this trend, Norwegian authorities implemented new regulations last month protecting consumers’ right to use cash wherever other payment methods are accepted.

Looking ahead, Norges Bank Deputy Governor Pal Longva confirmed the central bank remains on schedule to present its comprehensive CBDC recommendation to lawmakers in 2025, marking the culmination of a five-phase exploration process that included two years of collaborative research.

The measured approach by Norwegian authorities reflects a growing global trend among developed economies to carefully weigh the benefits and risks of CBDCs against existing payment infrastructure and financial inclusion needs.