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Norway preps CBDC tests

Norway's central bank has set out plans to test a host of technical options for a CBDC over the next couple of years.

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Norway preps CBDC tests

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Norges Bank says it is pushing ahead with CBDC plans on the basis of recommendations from an internal working group as it seeks to see what the best technical option is "if it becomes relevant to introduce a CBDC in Norway".

The bank notes that payment technologies are evolving at breakneck pace and that the share of cash payments in Norway is now probably the lowest in the world.

Meanwhile, other central banks are pushing ahead with their CBDC work: neighbour Sweden is well advanced in its e-krona work, while China is already carrying out real world digital yuan trials and the UK has set up a taskforce to explore a Britcoin.

Norges Bank governor Øystein Olsen says: "Central bank cash provides the payment system with a number of important attributes that may be relevant to retain and develop further by issuing a CBDC. Additional knowledge is necessary for us to be able to decide whether issuing a CBDC is appropriate."

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