Norway’s financial task force urges cautious approach to CBDC: report

A Norwegian task force has recommended against the immediate adoption of a central bank digital currency.

A Norwegian advisory committee has recommended against the immediate adoption of a state-controlled digital currency, Bloomberg reported, citing the committee’s findings presented to Finance Minister Trygve Slagsvold Vedum. The report called on policymakers to focus on developing the necessary regulatory framework for potential future implementation.

The task force concluded that cash is critical to ensuring accessible and secure payments but acknowledged that “central bank digital currency may be a suitable tool to safeguard these aspects in the future.”

Norway is among the most cashless societies in Europe; A 2023 Norges Bank survey shows that only 2% of respondents used cash in their most recent in-person transaction, according to Bloomberg.

Norway’s approach mirrors Sweden’s

The task force’s recommendation echoes similar findings in Sweden, where a government-appointed inquiry concluded there was no urgent need for e-krona and called on the Riksbank to reassess its plans.

Norges Bank is expected to present its own advice to lawmakers on whether CBDC will be adopted in 2025 and, if so, in what form. Central Bank Deputy Governor Pal Longva recently confirmed that the bank is working on both retail and wholesale CBDC models, with the latter gaining traction globally for its applications in interbank transactions.

Norway’s CBDC exploration entered its fifth phase this year after two years of joint research. The decision on implementation is expected to be made by the end of 2025.