(Bloomberg) -- An expert committee advising Norwegian politicians signaled there’s no rush to adopt a digital currency issued by the central bank, echoing their colleagues in neighboring Sweden even as cash use dwindles.
Even so, work should be started “on the necessary regulatory changes” for a possible introduction of a CBDC that may become relevant in future, a government-appointed task force said in a report submitted to Finance Minister Trygve Slagsvold Vedum on Friday. It said cash still has an important role in ensuring safe and simple payments for everyone.
“The committee doesn’t currently see a need to introduce digital central bank money for reasons of financial inclusion, privacy or emergency preparedness, but doesn’t rule out that a central bank digital currency may in the future be a relevant instrument for safeguarding these considerations,” said the advisory group, which was set up in May last year.
Cash use in Norway fell to the lowest level globally at the onset of the pandemic, with 2% of participants in a Norges Bank survey earlier this year saying they used cash the last time they paid at a physical point of sale.
Rules aimed at safeguarding rights to pay with notes and coins came into force last month, allowing consumers to pay in cash in all sales locations where other types of payments for goods or services are accepted.
Norges Bank remains on track to finalize a recommendation to lawmakers next year on whether a central bank digital currency should be introduced, and in what form, Deputy Central Bank Governor Pal Longva said last month.
A Swedish government-appointed inquiry said last year that the largest Nordic country currently has no need for a digital central-bank issued currency, and the Riksbank should reconsider its plans for an e-krona.
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