Only 4% of Norwegians use cash, but the central bank is in no hurry to introduce CBDC
Ida Walden Bash, Deputy Governor of the Bank of Norway, the country’s central bank, spoke at the Finance Norway Payments conference about the declining use of cash and the prospects for introducing the national digital currency (CBDC).
„Only 4% of payments are now made in cash,“ said Bash. „As far as we know, the share of cash payments in Norway is lower than in any other country.
The amount of cash payments has fallen significantly against the backdrop of the COVID-19 pandemic. „Our neighbouring countries are also characterised by a decline in the use of cash,“ added Corona Millionaire review, detailing in more detail the various aspects of the CBDC.
According to her, cash remains the most accessible means of payment, while there are risks of failure in digital systems. „Cash is a widely available legal tender,“ she said. „The country could lose some of the benefits of cash if it becomes fully digital with the CBDC. The question is: „Does the CBDC have significant advantages over cash?
„The potential introduction of the CBDC is still a long way off,“ she concluded, adding: „The lack of urgency reflects our view that there is no urgent need to introduce the CBDC. The introduction of CBDC could have a significant impact in a number of areas, so our decision must be well founded“.