Cash usage in Norway is dwindling prompting the government to consider issuing digital currency to its citizens.
Norges Bank has rolled out a report named “Central Bank Digital Currencies.” It explored a future possibility of citizens turning away from money as a currency. The bank must provide “a number of new attributes that are important for ensuring an efficient and robust payment system.”
Trond Bentestuen, group executive vice president of wealth management and insurance at the DNB bank, has been pointing out as early as 2016 that only 6 percent of Norwegians use cash. The bank itself has already ceased dealing with cash.
Deputy governor of Norges Bank, Jon Nicolaisen, said in a speech cash spending “continues to diminish”. Everyone gravitates towards electronic payments. He further said that “for many consumers, electronic central bank money could provide an alternative to depositing money in a bank, as cash does today.”
The Norges report portraying blockchain systems as “immature,” argues that the Central Bank Digital Currencies should either be “account-based” stored in servers or “value-based” stored in mobile chips.
The authors wrote:
“A CBDC raises complex issues. There is virtually no international experience to draw on. Further analysis is needed to assess the purposes of a CBDC, the types of solutions that best achieve these purposes and the benefits measured against financial and other costs.”