Norges Bank, Norway's central bank, has given its support to the European Union's Markets in Cryptoassets Regulation (MiCA) as the country explores the possible implementation of a central bank digital currency (CBDC), Cointelegraph has reported.
Kjetil Watne, who heads Norges Bank's CBDC project, has stated that as a member of the European Economic Area (EEA), Norway welcomes the framework provided by MiCA. However, he has also mentioned that the bank is still assessing whether additional regulations may be necessary to ensure financial stability.
Norges Bank has not yet made a final decision on issuing a CBDC and that it is currently assessing how to address regulatory challenges in the decentralized finance space.
In line with the EEA, Norway is closely following EU regulations, including the MiCA, which is currently undergoing a public review and being evaluated by the Ministry of Finance, according to Watne.