Key Insights
- Norway halts its CBDC project and continues to monitor developments in international digital currency initiatives.
- The tokenisation tests are ongoing, with Norges Bank exploring payment alternatives.
- The CBDC report will be in full next year, while international work advances.
Norway’s central bank has paused its digital currency plans after assessing that the country’s payment system continues to perform well for everyday use. The bank closed its latest review by stating that a central bank digital currency (CBDC) is not currently needed, effectively halting several years of evaluation.
In a news release on Wednesday, Norges Bank stated that a digital krone is “currently not warranted,” noting that consumers, banks, and merchants already operate within an efficient payments landscape. The bank stated that its review focused on whether a CBDC is necessary to maintain confidence in payments made in Norwegian currency and to support long-term financial stability.
Global Shifts Push CBDCs Back Into Focus
Norges Bank noted that the decision reflects today’s conditions, not a long-term position. Governor Ida Wolden Bache stated that the bank may revise its view as global trends evolve and payment habits change. Several major central banks are developing digital-currency frameworks, and these efforts could influence Norway in the coming years.
Moreover, the United States recently restricted the Federal Reserve from launching a retail digital dollar under the GENIUS Act, while allowing wider tokenisation projects to continue. Norway is monitoring these shifts, along with activity in Europe and Asia, where CBDC work continues at different speeds.
According to data from the Atlantic Council, 137 countries and currency unions, covering most of the world’s GDP, are exploring CBDC models. Only three countries have moved to full deployment: the Bahamas, Jamaica, and Nigeria. Additionally, China’s e-CNY and India’s e-rupee continue to run in pilot and early adoption programs.
Tokenisation Remains a Priority for Norway
Although the digital-currency program is on hold, Norges Bank intends to continue work on tokenised financial systems. It also acknowledged that the long-term scale of tokenisation remains uncertain due to market, regulatory, and technical questions.
The central bank plans to conduct additional tests with domestic payment system partners to study how tokenised approaches perform in real-world environments. However, the work will include both retail and wholesale design pathways. While not committing to a launch, Norges Bank intends to be ready to deploy a digital-currency model if conditions shift.
Report Expected Early Next Year
A full report summarising the bank’s research and outlining upcoming work will be released in the first quarter of next year.
The bank also intends to track international work, including the Euro system’s progress toward a potential digital euro and new frameworks that could support shared CBDC infrastructure.
