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MNI BRIEF: Norges Bank: CBDC Progress Needs Political Decision

LONDON (MNI)

The Norges Bank will continuing work on experimental testing and consequences of introducing a central bank digital currency, but that ultimately a CBDC requires a political decision to progress, the bank indicated in the latest financial infrastructure report, published Thursday.

Norway's financial infrastructure functioned smoothly through the Covid-19 shock and the central bank highlighted the risks if the general public started replacing bank deposits with a CBDC, which would hit funding, lending and bank stability. The next CBDC work phase will take up to two years, with Norway's neighbour, Sweden, ahead of the pack in CBDC development.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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