Norwegian Central Bank Wants Government to Get Serious About Crypto Regulation

In a financial infrastructure report released on Thursday, the Norwegian Central Bank advocated for its government to further regulate crypto assets.

Norges Bank argued that an “international regulatory framework is crucial” for crypto and suggested existing regulations in Norway aren’t enough to manage all risk.

“Some types of risk associated with crypto-assets are covered by general regulations. At the same time, there is a need for further regulation specific to crypto-assets,” the report said.

The bank’s deputy governor Pål Longva added that while international regulation is important, waiting for the world to regulate crypto isn’t the only option.

“Norwegian authorities should assess whether to proceed more quickly rather than wait for international regulatory solutions. Norges Bank will contribute to such an assessment and to regulation that promotes responsible innovation,” Longva said in a statement. 

Additionally, Norges Bank has reiterated its interest in studying the feasibility of a central bank digital currency, and will continue to investigate “possibilities afforded by, and the impact of, a CBDC” until 2025.

“Norges Bank is now stepping up its efforts to study whether the public should have access to a central bank digital currency (CBDC) in addition to cash,” the report said.

Longva has been on the record on the bank’s position on CBDCs since at least March of this year, where he said it continues to explore implementation options. The final decision, though, lies with the Norwegian parliament, he said. 

According to the Atlantic Council’s CBDC tracker, 11 nations have launched CBDCs so far, with most of them being Caribbean countries. Problems with tech, money circulation and too few vendors accepting digital currencies has stymied progress. Nigeria also launched a CBDC called the eNaira but adoption has been narrow.

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