Norway Plans for the Future

Norges Bank Deputy Governor Ida Wolden Bache spoke recently about the Bank’s thinking on CBDCs, or DSPs as they are known in Norway. Even with cash steady since the Spring at 4% of transactions, surely the lowest figure in the world, Norges Bank is in no hurry to issue a DSP. It continues though, to think and prepare.

Norges Bank sees having a competitive payment sector as an important goal. It is concerned that technological and market developments are making it less competitive and simultaneously reducing the incentive for co-operation to establish a shared underlying infrastructure. The speech noted the risks from big technology players also hosting commercial platforms and having a significant social media presence. In addition to the likes of Amazon, Apple and Facebook, Mastercard has recently bought a local payment company, Net, increasing significantly its presence.