Cryptos Will Impact Financial environment – Norve Bank Deputy Governor

In a statement issued by Norway’s Norve Bank Deputy Governor- Ida Wolden Bache, the financier has acknowledged the gradual increase in the adoption of cryptocurrencies in the country with key figures such as the company Aker purchasing bitcoin worth $58 million.

She stated that it was very unlikely that cryptos could replace banks and the kroner but that it would have a significant impact on the financial environment, more so in the private sector. She has also acknowledged that there would be a need for a change in infrastructure to accommodate the increased uptake of cryptocurrencies.

Nordic countries have been gradually adopting cashless techniques in a move to curb money laundering, offer better security, and minimize costs for merchants.

Norway itself is identified as having one of the lowest uses of cash globally. Denmark also experienced a reduction in demand for cash to the extent that their National bank halted the process of printing money. Sweden too is almost cashless with barely 1% of payments being done with cash.

Bache has further acknowledged that with the cashless system, their banks have had to operate digitally with her bank Norve being in the testing phase of their CBDC.

Competition from other nontraditional financial institutions such as Apple and Facebook has further driven the need for them to embrace these technological methods.

Bache states that completely eradicating the kroner is highly unlikely as the state would be required to accept payments such as taxes and other fees in the form of a different currency different from the kroner. This would present a major challenge due to the fluctuations of the exchange rate and the risk of losing a common unit of measurement.

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