Deputy Governor of the Central Bank of #Norway (Norges Bank) Pål Longva announced that the regulator will decide on the launch of its own digital currency (#cbdc ) by the end of next year.
The official said that Norges Bank is trying to keep up with central banks in other European countries by studying and testing state-owned stablecoins. The #centralbank is now studying retail and wholesale versions of the future digital Norwegian krone. The retail CBDC will be available to individuals for everyday use, while the wholesale version should simplify and speed up transactions between financial institutions.
Longva said that many central banks have recently focused on the wholesale model because of its possible advantages for the banking system, and Norges Bank will also focus its efforts in this direction. According to the official, smooth implementation of retail CBDC will require cooperation with commercial banks and other stakeholders. Therefore, the Norwegian central bank is still assessing the potential challenges and obstacles that may arise with the retail digital krona.
"We are keeping pace with many central banks as we explore complex technical issues. We still have a lot to consider and evaluate, so right now we do not see an urgent need to launch a state-owned stablecoin,” Paul Longva said.
The pilot project to test the digital krona, which has been in development for more than two years, is in its so-called fifth phase. In 2022, the Norwegian financial regulator launched a sandbox to test the CBDC to see if it could ensure the stability of the state currency and the financial system.