Norges Bank considers the operation of the financial infrastructure to be secure and efficient. There have been few system disruptions in the past year, and systems have been stable also during the coronavirus pandemic.

Solutions for real-time payments have improved

Payment solutions where the funds are available in the payee’s account seconds after the payment is initiated are increasing in use. During spring 2020, Norwegian banks have begun to use a new infrastructure for real-time payments, called Straks 2.0.

“Straks 2.0 is a clear step forward, but there is still room for improvements. We will look at whether we should expand our operational role in the payment system so that more payments can be settled directly in Norges Bank,” says Deputy Governor Ida Wolden Bache.

New measures to strengthen cyber resilience and contingency arrangements

Cyber crime is on the rise, and attack methods are constantly changing. Norges Bank and Finanstilsynet (Financial Supervisory Authority of Norway) have decided to draw up a proposal for a framework to test the cyber resilience of the banking and payment system in Norway. The framework will build on the TIBER-EU framework designed by the European Central Bank to promote financial stability. The framework will be elaborated in collaboration with the industry and relevant authorities.

Disruptions in the financial infrastructure can have material negative consequences.

“The operation of critical payment infrastructure should be located in Norway. If it is operated from abroad, contingency arrangements that can be put in place immediately should be established in Norway,” says the Deputy Governor.

Central bank money must be available and easy to use

Today, most payments are made using deposit money. This is money created by banks. Cash is issued by the central bank. Central bank money has attributes that ensure confidence in the monetary system and an efficient payment system. For central bank money to fulfil its role, it must be available and easy to use.

“We are now looking at whether it may become necessary to issue a central bank digital currency as a supplement to banknotes and coins, and we have started exploring possible technical solutions,” says the Deputy Governor.