Norges Bank has concluded that there is currently no basis for introducing digital central bank money (DSP). This likely means further attention to other forms of payment such as stablecoins, bitcoin and tokenized bank deposits.
When Norges Bank now drops the introduction of Digital Central Bank Money, it is a decision that most players in digital finance have eventually counted on. While other payment solutions such as stablecoins have increased in scope, customer-oriented DSP in particular has had less wind in the sails.
However, Norges Bank writes that the investigation will continue.
In the future, the need for such money may change. We should be ready to be able to introduce digital central bank money if it becomes necessary for an efficient and secure payment system,” says Central Bank Governor Ida Wolden Bache (Photo: Norges Bank)
Norges Bank's decision comes at the end of phase 5 of the central bank's DSP process, a phase that has dealt not only with technical matters, but also about whether there would be a recommendation to make a policy decision, since the introduction of digitial central bank money, at least for consumers, would require a change in the law. Such a recommendation does not exist, and thus most Norwegian politicians can continue to live in ignorance of how the payment solutions of the future will develop.
Norges Bank writes on its website that there are two different types of digital central bank money, retail DSP and DSP for settlement.
Retail DSP would, in that case, be a generally available means of payment, similar to cash and bank deposits. It has long been expected that Norges Bank would hardly be the first among international central banks to launch retail DSP, and most central banks are happy to study the question but are waiting to see how a digital euro will be launched and taken into use.
The second type of DSP, DSP for settlement, would in that case be available to banks and other firms in the financial sector with an account at the central bank.
Kaupr has in this context been in contact with Norges Bank to clarify whether the decision not to introduce digital central bank money applies to both retail DSP and DSP for settlement.
To Kaupr, Knut Sandal, Director, Payments analysis and innovation at Norges Bank, confirms that the decision now applies to both retail DSP and DSP for settlement. Sandal emphasises that this is the assessment as of now. Sandal refers to the news release, where Norges Bank does not rule out that different forms of DSP may become relevant later, and will carry out further analysis of this. According to Sandal, the central bank will, among other things, continue with experimental technical testing of tokenisation and DSP, also in cooperation with the financial sector. As part of the testing, Norges Bank has also looked at tokenised bank deposits with settlement in DSP (for settlement). This testing has partly been carried out together with DNB. More information on this will be provided in reporting from the analysis, which will be published during the first quarter of 2026.
DNB is among those who have recommended the introduction of DPS for settlement, in combination with tokenized bank deposits, because the two serve different purposes. Tokenized bank deposits are not investigated by Norges Bank, but in the event will be a modernization of digital money transactions that already take place between financial market participants.
The decision by Norges Bank is likely to further increase attention on other digital payment solutions such as stablecoins and bitcoin, while it may be unclear whether tokenized bank deposits will depend on DSP for settlement or not.
Full message from Norges Bank you can read here. Norges Bank itself summarizes that there is now no basis for introducing digital central bank money, but that work on DSP and tokenization continues to ensure preparedness should the need change, in line with the Bank's Strategy 28 and further plans for a new report in the first quarter of 2026.
