Published on CentBit.Online – Your Trusted Crypto & Blockchain Expert in Bangladesh
A Norwegian government-appointed committee has advised delaying the rollout of a central bank digital currency (CBDC), emphasizing the importance of laying the regulatory foundation for a potential future implementation.
Key Insights from the Norwegian CBDC Report
According to a Bloomberg report, the advisory group highlighted that Norway’s low cash usage, combined with minimal immediate needs for financial inclusion or emergency preparedness, makes a rapid CBDC rollout unnecessary.
In a recent Norges Bank survey, only 2% of respondents used cash for their most recent in-person payment, showcasing the country’s predominantly digital economy. However, the task force acknowledged that cash continues to play a vital role in ensuring secure and inclusive payments.
Preparing for a Digital Future
The committee proposed several recommendations:
- Regulatory Updates: Establish frameworks to ensure that digital payment systems are robust, inclusive, and ready for future needs.
- Cash Protections: Norway has recently enacted laws ensuring the right to use cash in all transactions where digital payments, including CBDCs, are accepted. These measures are considered crucial for financial accessibility during the transition to digital systems.
“The committee doesn’t currently see a need to introduce digital central bank money for reasons of financial inclusion, privacy, or emergency preparedness but doesn’t rule out its relevance in the future,” the report stated.
Deputy Central Bank Governor Pal Longva confirmed that Norges Bank will provide its formal recommendation regarding the design and potential introduction of a Norwegian CBDC in 2025.
South Korea Launches CBDC Pilot with Seven Banks
Meanwhile, South Korea has initiated a CBDC pilot program involving seven major banks, including Kookmin Bank, Shinhan Bank, and Woori Bank.
The program, authorized by the Financial Services Commission (FSC), the Bank of Korea, and the Ministry of Science and ICT, aims to explore the use of CBDC-based tokens for public transactions. A specialized CBDC Usability Test Preliminary Inspection Team will oversee the pilot, ensuring compliance with regulatory standards.
This initiative mirrors Norway’s cautious yet proactive approach to CBDCs, focusing on real-world usability while maintaining robust oversight.
Why This Matters
The global move toward CBDCs underscores the need for thorough planning to balance innovation, accessibility, and financial security. Norway’s measured approach offers valuable insights for nations like Bangladesh, considering digital currency adoption.
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