In a recent publication of the Financial Infrastructure Report 2023 and Norges Bank Papers 1/2023 titled “Retail Payment Services 2022,” Norges Bank has highlighted the need to reinforce contingency arrangements and enhance the payment system in Norway. While the financial infrastructure remains secure and efficient, proactive measures are necessary to ensure secure and efficient payment options for the public in the future.
Deputy Governor Pål Longva emphasized the intensification of risks and the expanding threat landscape, stressing the importance of individual entities’ efforts and effective public-private cooperation in maintaining a secure payment system. With cyber incidents capable of rapidly spreading across sectors, contingency work in various sectors must be considered within a broader context.
To enhance the cyber resilience of financial sector entities and promote financial stability, Norges Bank, in collaboration with the Financial Supervisory Authority of Norway (Finanstilsynet), has introduced a framework for testing the cyber resilience of banking and payment systems. Realistic simulated attacks are currently underway to strengthen the cyber resilience of the financial sector.
The payment landscape is undergoing significant changes with the emergence of new technologies, payment methods, and payment providers. Norges Bank is faced with important decisions in designing the payment system. Over the next few years, they will carefully study and determine the future design of Norges Bank’s settlement system. Additionally, the central bank is intensifying its efforts towards the development of a central bank digital currency.
While worldwide efforts are ongoing to establish regulations for crypto-asset markets, the duration of this process remains uncertain. Deputy Governor Pål Longva suggested that Norwegian authorities should consider expediting their assessment instead of waiting for international regulatory solutions. Norges Bank stands ready to contribute to these assessments and to regulate responsibly, fostering innovation in the process.
By strengthening contingency arrangements and enhancing the payment system, Norges Bank aims to safeguard the security and efficiency of the payment infrastructure in Norway, ensuring the public’s continued trust in their payment methods and transactions.