Norges Bank, Norway’s central bank, has decided not to introduce a central bank digital currency (CBDC) at this time, citing the efficiency of the current payment system. Governor Ida Wolden Bache stated that a CBDC may be needed in the future for a secure payment system. Norway has stopped its CBDC plans after years of experiments with retail and wholesale models, including token-based settlement tests. The central bank believes that wholesale CBDCs could modernize interbank settlement, but the benefits are unproven without mature infrastructure or standards. Norges Bank remains open to collaborating with other central banks on CBDCs and will explore using the Eurosystem’s solutions and standards. The European Central Bank is advancing towards the launch of a digital euro, estimating that CBDC issuance could start in 2029 pending the establishment of a suitable legal framework. ECB stated that if legislation is resolved by 2026, CBDC pilot exercises could commence in 2027, preparing for a potential first issuance in 2029.

Read more at Cointelegraph: Norway Steps Back From CBDC Launch as Norges Bank Pauses Plans