4% Of Norway Uses Cash As The Country Evaluates CBDC

According to Norges Bank reports, 4% of Norway uses cash as its usage declined since the COVID-19 pandemic hit. However, physical currency also carries strengths that CBDCs could lack so let’s read more in today’s crypto news.

Speaking at an event, Ida Wolden Bache who is the deputy governor at Norway’s central bank-Norges Bank, described a drop in cash payments while elaborating on Central Bank Digital Currencies or CBDCs. Bache said on the fact that 4% of Norway only uses cash:

“Only 4% of payments are now made using cash. This share is approximately the same as in spring, and considerably lower than before the pandemic. To our knowledge, the share of cash payments is lower in Norway than in any other country.”

Norway uses the kroner as the currency issued by the Norges Bank which the country’s central bank. After the COVID-19 concerns arose in March, the common points of personal contract logically became worrisome for the countries including physical currencies that change hands all the time. CBDCs have also arisen as a hot topic in 2020 which is a large number of world’s nations to put out such an asset with China’s boasting testing of the asset.
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Bache continued detailing various aspects of CBDCs:

“A trend specific to Norway and some of our neighbouring countries is the low and falling level of cash use.”

The central bank monetary policy director mentioned the qualities available in cash since it still remains available if digital payment systems to go down for example:

“Cash is legal tender that is widely accessible. The question is whether something important will be lost if cash dies out and we do not introduce CBDC? Is central bank money crucial to confidence in the monetary system? Could CBDC provide more than cash can offer, in the form of a greater range of uses and more innovation?”

Bache touched on an array of other points of consideration when it comes to Norway launching a central bank digital currency. The prospective introduction of the coins is still way off as she said:

“The lack of urgency reflects our view so far that there is no acute need to introduce a CBDC. The introduction of a CBDC could have considerable consequences in a number of areas. Our decision must be well-informed.”

As far as progress goes, Norway’s central bank continues studying CBDCs with Brazil’s economy minister confirming the country’s pursuit for CBDC a day ago.