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

A Norwegian task force has advised 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 submitted to Finance Minister Trygve Slagsvold Vedum. The report urged policymakers to focus on developing the necessary regulatory framework for a potential future rollout.

The task force concluded that cash remains critical to ensuring accessible and secure payments but acknowledged that a “central bank digital currency may in the future be a relevant instrument for safeguarding these considerations.”

Norway is among the most cashless societies in Europe, with a 2023 Norges Bank survey showing just 2% of respondents used cash for their most recent in-person transaction, according to Bloomberg.

Norway’s approach mirrors Sweden’s stance

The task force’s recommendation echoes similar findings in Sweden, where a government-appointed inquiry concluded that there is no immediate need for an e-krona, urging the Riksbank to reassess its plans.

Norges Bank is expected to provide its own recommendation to lawmakers in 2025 on whether to adopt a CBDC and, if so, in what form. Deputy Central Bank Governor Pal Longva recently confirmed that the bank is studying both retail and wholesale CBDC models, with the latter gaining traction globally for its applications in interbank transactions.

Norway’s exploration of a CBDC entered its fifth phase this year, following two years of collaborative research. A decision on its implementation is expected by the end of 2025.