Norway Pauses CBDC Push Citing Secure Payments and Unclear Benefits in Wholesale Models

Highlights:

• Norway Pauses CBDC as the central bank says the payment system remains strong.
• Norges Bank is still researching while it questions the need for new digital settlement tools.
• Central banks are exploring token systems as uncertainty around CBDC infrastructure shapes future decisions.

Norges Bank said Wednesday that Norway does not need a central bank digital currency now. The bank said the current payment system remains stable and secure. It also said the system offers low transaction costs and fast settlement for users across the country. Governor Ida Wolden Bache said the bank reviewed its research and found no urgent need for a digital krone. She said the bank will consider a CBDC only if future conditions demand one.

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Norway Pauses CBDC Launch: Norges Bank Reconsiders Digital Currency Plans

Norwegian Central Bank Reassesses CBDC Development, Emphasizing Existing Payment Infrastructure Norway’s central bank, Norges Bank, has announced that implementing a central ban…https://t.co/2SRS9TSXME

— Crypto Breaking News (@CryptoBreakNews) December 11, 2025

Cash use in Norway remains very low, which once pushed the debate on a digital alternative. The bank said it still sees no major gap that a digital krone would fill today. It also said the system already protects users and supports strong contingency plans for disruptions. Norges Bank spent several years testing both retail and wholesale CBDC models. It explored token-based settlement and cross-border pilots with other central banks.

The bank indicated that a retail CBDC would benefit the population, whereas a wholesale one would assist banks in clearing transactions. It explained that both concepts are still feasible but not profoundly needed at present. The decision leaves room for more research without rushing. It also validates that Norway favours a cautious approach as digital payment activity grows.

Norway also plans to introduce a temporary limit on new crypto mining centers in late 2025. The government said the centers consume significant power but bring limited value to local communities. It wants to direct electricity toward industries that support stronger economic growth.

Norway Pauses CBDC as Bank Reviews Broader Settlement and Infrastructure Gaps

Norges Bank claimed that there are yet to be proven advantages of wholesale CBDCs. It stated that there are no global standards to enable safe and efficient settlement at scale. It also reported that off-the-shelf systems are still missing, and this slows down any large deployment. The bank highlighted its previous blockchain pilots to demonstrate that it is still testing. It also indicated that the ultimate requirement of token-based settlement might increase in case global systems evolve.

The bank emphasized its participation in the Project Icebreaker in 2023. The pilot experimented with inter-regional retail CBDC flows across regions. It subsequently extended tests in tokenized settlement models to last year. Project director Kjetil Watne said CBDCs would coexist with cash and deposits if introduced in the future. He also said the technology might support new payment options for users.

The bank also reviewed Europe’s CBDC timeline. The European Central Bank expects to move toward digital euro pilots in 2027. It said legislation may be ready in 2026, which could allow the first issuance in 2029. Norges Bank said it will watch this work and assess Norway’s needs again.

Meanwhile, South Africa’s central bank said it also sees no need for a retail CBDC. It said its decision followed years of research and industry discussions. The announcement added to a growing list of countries taking cautious steps on CBDCs.

South Africa’s central bank says CBDCs can wait 😌

So, the South African Reserve Bank just dropped a paper saying there’s no rush to roll out a retail CBDC. While it’s technically doable, they’re more focused on upgrading the current payment systems and getting more non-banks… pic.twitter.com/rZtBUhDR5S

— Seven Crypto 🐋 (@SevenWinse) November 28, 2025

Bank Extends Tokenization Tests While Keeping Future Options Open

Norges Bank said token-based systems may support faster settlement in future markets. It also said important risks remain unclear. It plans more experiments with local and international partners. The bank also plans to review emerging standards that may support cross-border CBDC systems.

The bank may explore the Eurosystem’s proposed CBDC frameworks once they mature. It also plans to release a detailed research update next year. Lawmakers in the United States continue to debate CBDC policy as well. Representative Keith Self filed an amendment to restore a CBDC ban after it was dropped from the new defense bill. He said the earlier commitment did not appear in the 3,086-page document.

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