Norway is considering the potential adoption of CBDCs and has expressed an openness to MiCA

Norway is presently in the process of evaluating the prospective implementation of a central bank digital currency (CBDC).

The first comprehensive regulatory framework for the crypto industry, the Markets in Crypto-Assets Regulation (MiCA), is scheduled to take complete effect on December 30. In order to comply with MiCA, stablecoin issuers must maintain a minimum of 60% of their reserve assets in European banks.

Additionally, the objective is to safeguard investors and encourage the extensive transformation of the crypto asset sector in European Union (EU) countries.

In an interview with Cointelegraph, the project director for the Bank’s CBDC initiative stated that Norway, as a member of the European Economic Area (EEA), accepts MiCA’s framework. Nevertheless, the bank is currently in the process of determining “whether it is necessary to implement additional regulations in order to enhance financial stability.”

He clarified that Norges Bank has not yet determined whether or not it will issue a CBDC and is currently in the process of assessing how to address the regulatory voids associated with decentralized finance.

He emphasized that Norway is in close compliance with EU regulations, including MiCA, which is presently being evaluated by the Ministry of Finance and is under public review as part of the EEA.

Norges Bank thinks that CBDCs could be useful for cross-border payments, but Watne said that the bank doesn’t know how a CBDC-based cross-border payment system would look.

It is important to note that the bank was involved in “Project Icebreaker” in 2023, a trial that aimed to investigate new architectures for retail CBDC transactions across borders.

Norges Bank has adopted a measured approach to privacy concerns with respect to CBDCs, acknowledging that digital payments will result in “digital taxation, as per Watne.”

He emphasized that Norges Bank is “not obligated to monitor individual payment transactions” and that the majority of central banks, including Norges Bank, do not intend to access customer CBDC payment details or account balances.

Norges Bank’s analyses presuppose that this will also be the case. For instance, it will be imperative to comply with pertinent regulations, such as those regarding anti-money laundering, as is the case with other forms of payment.

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