Since the COVID-19 pandemic began, cash usage in the country has declined as confirmed by the Deputy Governor of Norway’s central bank, Ida Wolden Bache. The representative mentioned at an event in the Finance Norway Payment conference that only 4% of its country’s citizens use cash as a form of payment. She also discussed the potential of central bank digital currency (CBDC) in Norway. CBDC Comes as an Innovative Payment Method to Cash Bach says that CBDC could threaten the existence of cash, but that would come at the compensation of an innovative payment method. However, the deputy governor does believe that the usage of cash remains advantageous than digital payments. For instance, if digital payments go down, cash will come to the rescue, saying: “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?” Bach further includes other points of consideration regarding Norway taking the path to launch a CBDC, saying: “The prospective introduction of a CBDC is still some way off. 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.” Norway’s Cash Usage Remains Lowest in the World Bache highlights that the usage of cash in the country stands at a lower percentage prior to the COVID-19 pandemic. She further validates that Norway’s percentage of cash usage remains the lowest in the world. The recent attraction towards CBDC in Norway comes amid the country resolving the issues of cash while offering its citizens a simple and traceable method of payment.
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