Torbjørn Hægeland of Norges Bank says it is currently not necessary to introduce customer-facing digital central bank money in Norway, but that the bank will be ready if necessary. The digital euro is not expected to change this.
From left: Inge Kjønnøy (Mastercard), Torbjørn Hægeland (Norges Bank), Øyvind Westby Brekke (Stø og Next), Lars Erik Tellmann (Nets), Tom Høiberg (moderator, Finans Norge).
Digital central bank money (CBDC) is a digital form of cash, issued directly by a central bank – unlike today's bank deposits, which are a claim on a private bank. The EU is working in parallel on a customer-facing digital euro, which is planned to be usable by individuals in the eurozone.
The remarks came during a panel debate at Finans Norge's payments and digitalization conference, where Hægeland took part alongside the rest of the panel, moderated by Tom Høiberg of Finans Norge.
Norges Bank has a declared policy of ensuring an efficient and secure payment system, and doing what is necessary to achieve that. – Right now, it is neither necessary nor appropriate to introduce a customer-facing CBDC in Norway, said Hægeland. But we will be ready to do so if it becomes necessary.
The digital euro is primarily intended for use within the eurozone, but could also be used outside it if legislation is put in place – something Norway would then also need to introduce itself. Hægeland doesn't think the digital euro alone will see significant use in Norway or displace current solutions. He mainly envisions use among European tourists in Norway, or Norwegians using their digital euro when at home in a eurozone country.
The assessment of a Norwegian CBDC will nonetheless not be decided by the digital euro, but by whether a CBDC adds important properties to the payment system, and whether it is the best way to achieve that. If Norway connects to the Target system and the digital euro infrastructure grows, the same infrastructure could be used if Norway later decides a CBDC is necessary.
In the same panel, Lars Erik Tellmann of Nets said the company is involved in two of the tracks in the EU's digital euro work: an offline solution developed with Capgemini, and network connectivity developed with Deutsche Telekom. Both are now being piloted, as part of a total of 36 pilots across Europe, including in the Nordics.
Tellmann expects rollout in the second half of 2027, and sees 2029 as a realistic target for the digital euro in Europe, even though cross-border cooperation is complicated. He points out that the discussion about the digital euro largely concerns European independence – not national isolation, but national and regional alternatives that provide choice.
The question is also relevant in Sweden: in October, the Riksbank wrote to the Riksdag's Committee on Finance that geopolitics, progress on the digital euro, and the growth of stablecoins make the question of a digital krona more pressing, asking the Riksdag to prepare possible legislation, see Kaupr's article on the Riksbank's letter.
Sources: Norges Bank, Nets
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