During her speech on Thursday, Ida Wolden Bache, Deputy Governor of the Central Bank of Norway, described the decrease in cash payments, developing the Central Bank's Digital Currency, or CBDC.
"Only 4% of payments are now made in cash," said Bache in her speech at Finance Norway's Payments conference.
Norway uses the crown, a currency issued by Norges Bank, the country's central bank. After the concerns about COVID-19 emerged in March, common points of personal contact logically became a concern for the countries. These included physical currencies, which are constantly changing.
The CBDC also became a hot topic in 2020. A large number of countries in the world wanted to release such a digital asset, and China boasts that they are testing its advantages.
The central bank's monetary policy director listed the important features available in cash. Cash remains available if, for example, digital payment systems fall. "Cash is a legal tender that is widely available," said Bache. The country may lose some of these aspects if it switches to a digital system with the CBDC.
Bache also raised a number of other issues to be taken into account when Norway introduces the CBDC.
In terms of progress, the Central Bank of Norway is continuing its research on the CBDC. Yesterday, the Brazilian Minister of Economy confirmed that the country is pursuing the CBDC.
