Ida Walden Bach, Deputy Governor of the Central Bank of Norway, described the cut in cash payments when the central bank’s digital currencies, or CBDCs were exposed.
“Only 4% of payments are now made in cash,” Bash said in a speech at a conference on financial payments in Norway. “In the spring, this proportion is almost the same, and it is much lower than it was before the epidemic,” she added. “As far as we know, the share of cash payments in Norway is lower than in any other country.”
Norway uses the krone, a currency issued by Norges Bank, the country’s central bank. After COVID-19 concerns emerged in March, shared personal contact has become a worrying ground for the land. These include physical currencies that are in constant circulation.
Central bank digital currencies have also become a hot topic in 2020. Many countries around the world have introduced such a digital asset, with China boasting testing of its assets.
“This is a trend that is common in Norway and some of our neighboring countries, namely low and low use of cash,” said Bash, explaining in detail various aspects of the global central bank’s currency scene.
The Director of Monetary Policy of the Central Bank mentioned important features that are available for cash. Cash remains available, for example, in the event of a failure of digital payment systems. “Cash is legal tender and is available in large quantities,” she said. A country could lose some of these aspects if it is fully digitized with central bank digital currencies.
Think about bash:
“The question is, will something important be lost if the money runs out and we don’t give the coins to the central bank in digital currency? Are central bank funds needed to build confidence in the monetary system? More applications and more innovation?
Bach also touched on a number of other points to consider when it comes to launching CBD in Norway. “There is still a long way to go before potential CBD adoption,” she said, adding:
“The lack of urgency reflects our view that there is no particular need to introduce CBD. The introduction of this convention could be disastrous in a number of areas. Our decision must be well thought out. ”
In terms of progress, the Norwegian central bank continues to study central bank digital currencies. Yesterday, the Brazilian Economy Minister confirmed the country’s bid to buy CBDC.