Central bank digital currency
A central bank digital currency (CBDC) is a digital form of central bank money denominated in the official unit of account for general purpose users. There is an ongoing project in Norges Bank to assess whether a CBDC should be introduced in Norway.
A CBDC is a claim on the central bank denominated in the official unit of account in the same way as cash. By contrast, bank deposits are claims on private banks. Norges Bank’s research is motivated by low and falling cash usage and the possibility of major changes in the payment system.
In 2018, a Norges Bank working group presented an overview of topics that should be emphasised in an assessment of whether Norges Bank should issue a CBDC.
Central bank digital currencies (Norges Bank Papers 1/2018)
In 2019, the working group took a closer look at potential purposes to be achieved by a CBDC, and alternative designs that could achieve these purposes.
Central bank digital currencies (Norges Bank Papers 2/2019)
In 2020, the CBDC project published a report in order to provide an update on ongoing work, disseminate knowledge and promote a dialogue
Status report – Norges Bank’s central bank digital currency project (Norges Bank Papers 2/2020)
In 2021, the working group had a closer look at the required attributes for a CBDC, how technical solutions can support these attributes, and potential consequences for banks if a CBDC is introduced. The working group also assessed how to proceed with the CBDC project.
Central bank digital currencies (Norges Bank Papers 1/2021)
Norges Bank has decided to proceed with a fourth phase of the CBDC project, within a two-year time frame. New elements in this phase are experimental testing of technical solutions in combination with further analysis of the need for and consequences if a CBDC is introduced.
The aim of this work is to provide a basis for deciding whether Norges Bank should test a preferred technical solution.