Norges Bank Doubts Crypto Will Replace Fiat
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May 16, 2021

Norway's central bank, Norges Bank, does not believe cryptocurrencies could replace fiat money, business news website E24 reported. Deputy Governor Ida Wolden Bache said it is "unlikely" that cryptocurrencies will make banks and Norwegian kroner redundant. However, she admits that the financial system will change.

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Norges Bank monitors cryptocurrency, and will test solutions for a central bank digital currency (CBDC) over the next two years. Other central banks, including the Riksbank in Sweden, are also working on the same digitization of the economy. Bache emphasizes that Norwegian banks "are far ahead technologically." She points out that the use of cash is low and the use of online banking is high as banks automate their business offerings.

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The Deputy Governor also noted that Norway needs a means of payment that provides "fast, secure and affordable settlement for trade." As iHodl earlier reported, Norges Bank Governor, Øystein Olsen, believes that additional knowledge is necessary for the regulator in order to decide whether issuing a CBDC is appropriate.

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