Norway is nearing the introduction of digital currency.

Norway is Edging Closer to Introducing a Digital Currency

The Central Bank of Norway, Norges Bank, is actively working on a decision to introduce a digital currency in the upcoming year. Deputy Governor of the Bank, Pal Longva, confirmed this during an interview with Bloomberg, disclosing advanced work on the recommendation for the introduction of a central bank digital currency (CBDC).

Norway Keeping Pace with European Leaders

Norway is not lagging behind other European countries in terms of CBDC implementation. While the Swiss National Bank announced no plans for a public version of a digital currency, focusing on wholesale version trials until 2026, the Norwegian financial institution continues its efforts.

Retail vs Wholesale CBDC Version

Norges Bank is considering two options for the digital currency – retail and wholesale. The wholesale CBDC would be used in interbank transactions, while the retail version would be for consumers, enabling them to use digital payment methods.

Norway – a Cashless Society

Norway is one of the countries with the lowest cash dependence in Europe. Around 98% of Norwegians use debit cards, and over 95% prefer payment apps over cash. Despite the decline in cash usage, the level of its use remains stable. According to research by the Bank of Norway, only 2% of respondents have recently made a cash payment in a store.

CBD Pilot and the Future of the Norwegian Digital Currency

The CBDC pilot program in Norway is entering its fifth phase, and the results of this phase will be crucial for the final decision on introducing the digital currency. The final decision is expected to be made by the end of 2025, when Norges Bank will outline further steps in the CBDC implementation process.