A well-functioning payment system continues to evolve

A well-functioning payment system continues to evolve

Norges Bank is today publishing Financial Infrastructure Report 2022 and Norges Bank Papers 2/2022, "Retail payment services 2021".

The Norwegian payment system features standardised and user-friendly solutions. A new survey by Norges Bank shows that payment costs are low compared with other countries. As a share of mainland GDP, resource use has decreased somewhat between 2013 and 2020.

Threats to fundamental national interests and critical infrastructure are increasingly cyber-related. Cyber attacks are used by various threat actors and may be a tool in wars and conflicts. Norges Bank and Finanstilsynet (Financial Supervisory Authority of Norway) are working together to introduce cyber resilience testing in accordance with the TIBER framework in Norway. Testing is expected to begin in 2023.

"Cyber incidents are a potential threat to the financial system and financial stability. Globally there is broad agreement that resilience against cyber attacks in the financial sector must be strengthened. This requires extensive public-private cooperation", says Governor Ida Wolden Bache.

Norges Bank is assessing whether the public should have access to a central bank digital currency (CBDC). The Bank is now conducting experimental testing of technical solutions, while the purposes and consequences of introducing a CBDC are analysed further.

Crypto-assets are currently rarely used for ordinary payments, while other applications are experiencing strong growth. The development of stablecoins, digital currencies intended to have a stable value against official currencies, may help to give crypto-assets a greater role in ordinary domestic and cross-border payments.

"Crypto-assets and associated services need to be better regulated. Norges Bank is monitoring developments and will contribute to regulation that promotes responsible innovation", says Governor Ida Wolden Bache.

Financial Infrastructure 2022