Norway’s Central Bank Supports MiCA

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Norges Bank, the central bank of Norway, has voiced its support for the Markets in Crypto-Assets Regulation (MiCA) proposed by the European Union as the country considers the implementation of a central bank digital currency (CBDC).

The project director for Norges Bank’s CBDC initiative, Kjetil Watne, has stated that Norway is in line with MiCA’s framework due to its membership in the European Economic Area (EEA).

However, the bank is currently evaluating whether additional regulations are needed to maintain financial stability.

Watne mentioned that Norges Bank has not made a decision on issuing a CBDC yet and is currently examining ways to address regulatory gaps in regards to decentralized finance.

As a member of the EEA, Norway closely follows EU regulations, including MiCA, which is currently under public review and being evaluated by the Ministry of Finance.

While CBDCs could offer benefits for cross-border payments, the structure of a CBDC-based cross-border payment system is still uncertain. In 2023, Norges Bank participated in ‘Project Icebreaker,’ a trial focused on exploring new architectures for retail CBDC transactions across borders.

Watne emphasized that if a CBDC is introduced, it will complement cash rather than replacing it and digital currencies will coexist with CBDCs.