- Norway pauses its CBDC program, stating that its existing payment system remains secure and efficient.
- As payment habits evolve, the central bank will continue researching both retail and wholesale CBDCs.
- Norges Bank will shift focus toward tokenisation testing while monitoring global developments in digital currencies.
Norway believes its payment infrastructure is functioning effectively and, after several years of study, sees no immediate need to introduce a central bank digital currency.
This decision reflects the country’s position as one of the world’s least cash-dependent economies, where existing systems continue to operate reliably and efficiently.
It also underscores the central bank’s priority to ensure payment systems remain secure and resilient rather than rushing to issue a digital krone before a clear need arises.
Norges Bank announced on Wednesday that a CBDC is not required at this stage, following a broad assessment of how a digital krone would support payment security and efficiency.
As cash usage in Norway continues to decline to one of the lowest levels globally, debate has intensified over whether a digital alternative is needed to maintain the appeal of the national currency for consumers, banks and merchants.
The central bank concluded that the current system delivers stable operation, fast settlement, low economic costs and robust contingency arrangements.
It also noted that a range of projects are already underway to further strengthen these backup systems.
Timing of the Decision
The central bank was clear that this decision is not permanent; as payment habits change, the question could resurface.
Norges Bank said it would be prepared to introduce a digital krone if necessary to maintain a secure and efficient payments system.
The bank continues to distinguish between two main CBDC models.
A retail CBDC would serve as a widely accessible means of payment, similar to cash or bank deposits.
A wholesale CBDC would be designed only for financial institutions, allowing tokenised units recorded on a blockchain-like digital ledger to be used for interbank transactions.
Types of CBDC
These distinctions have shaped much of Norway’s work to date.
Under the retail model, ordinary users would have direct access to central bank money in digital form, while the wholesale model would emulate central bank deposits through tokenised units available to financial institutions.
Both versions remain under study as part of a broader assessment of future payment needs.
The country’s low reliance on cash has made these assessments more urgent in previous years.
However, Norges Bank believes maintaining the robustness and dependability of the existing system is the immediate priority; a CBDC would only be considered if future payment risks or gaps emerge.
Tokenisation Testing
Although Norway has paused plans to issue a digital krone, it is intensifying its focus on tokenisation.
The bank says token-based systems can boost efficiency, foster innovation and lower settlement risk.
At the same time, it warns that the scope of tokenisation and the risks that may emerge as the technology matures remain uncertain.
Norges Bank plans to work with industry partners to continue practical experiments to understand how tokenisation solutions perform in real transactions.
These tests are part of a broader strategy to prepare for future digital finance developments, even without a current commitment to adopt a CBDC.
The central bank will publish a detailed report on its CBDC research in the first quarter of next year.
The report will outline work completed so far, the next steps, and how the government will monitor progress in other jurisdictions.
Norway is closely watching international initiatives, including possible moves toward a digital euro within the Eurosystem and emerging global standards that could support shared CBDC arrangements in the future.