Norway's central bank has abandoned its own digital currency

Norway's central bank (Norges Bank) has no immediate plans to issue its own digital currency, according to Governor Ida Wolden Bache. She explained this decision by citing the effectiveness of existing payment systems in the country, such as BankAxept and Vipps, which, in her view, fully meet the needs of the population without the need for government intervention.

Reasons for rejecting a digital krone

Norges Bank Governor noted that there is currently no need to launch a digital Norwegian krone, as existing systems already provide convenient and secure payments. However, she also emphasized that the regulator's position may change in the future, given the growing interest in central bank digital currencies (CBDCs) worldwide.

Global Context

According to the American think tank Atlantic Council, 20 countries are actively developing CBDCs, 49 are already in the testing phase, and 36 are exploring their possibility. The Bahamas, Jamaica, and Nigeria have already successfully launched their digital currencies.

The Future of the Digital Krone

Ida Volden Bache noted that there may be a need for a digital krona in the future, and Norges Bank is prepared to implement it in the payment system. She emphasized the importance of cooperation with the financial market and other central banks in this area.

Possible Versions of the Digital Krone

In the long term, the digital krona could be offered in two versions:

- Retail: for private clients.
- Wholesale: for interbank settlements.

However, Norges Bank currently prefers to follow the strategy of the United States, where the Federal Reserve has also rejected the launch of a digital dollar.

Environmental Initiatives

In June, Norwegian authorities proposed a ban on energy-intensive cryptocurrency mining to prevent excessive resource consumption and reduce the burden on the energy grid. This decision underscores the country's commitment to sustainable development and the efficient use of energy resources.