Norway's central bank, Norges Bank, has expressed support for the European Union's Markets in Crypto-Assets Regulation (MiCA) while evaluating the potential implementation of a central bank digital currency (CBDC). Kjetil Watne, project director for the CBDC initiative, noted that as a member of the European Economic Area, Norway aligns closely with EU regulations. The assessment of MiCA is currently underway by the Ministry of Finance. While Norges Bank finds CBDCs potentially beneficial for enhancing cross-border payments, it has not yet decided on issuing one. Watne emphasized that CBDCs would complement rather than replace cash. Privacy concerns associated with CBDCs have been acknowledged, with assurances that Norges Bank will not monitor individual transactions or account balances, adhering to relevant compliance rules. The MiCA regulation is set to fully take effect on December 30, imposing strict reserve requirements on stablecoin issuers, which has raised concerns about potential financial risks if a bank holding these reserves were to fail.

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