There have been several outliers in Norway's financial infrastructure in recent years, and operations have been stable even during the coronavirus pandemic. Norges Bank believes that the financial infrastructure is safe and efficient. Norges Bank has published the Financial Infrastructure 2021 report and a note on customer-centric payment services.
The new framework aims to strengthen cybersecurity
The most serious threats to critical financial infrastructure include digital mapping and sabotage. An attack on a single system can have ramifications for other parts of the financial infrastructure and, in the worst case, for the entire financial system.
- The testing and risk identification of cyber incidents in the banking and payment system can be improved. Finanstilsynet and Norges Bank have prepared a proposal for a cybersecurity testing framework in the Norwegian financial sector. The tests will give us a better insight into the vulnerabilities and how they can be a source of systemic risk and threaten financial stability, says deputy governor of the central bank Ida Wolden Bache.
Considering how to improve the real-time payment system
Payments where the recipient receives money into their account seconds after they are sent out are called real-time payments. A well-functioning real-time payment system is an important part of an efficient payment system. The infrastructure enabling such payments was strengthened in 2020. However, in addition to the basic infrastructure, there is a need for further improvement and development of customer-oriented services.
- Norges Bank is currently considering how best to further develop its real-time payment infrastructure, including whether Norges Bank should assume an increased operational role. The case will soon be referred for consideration, says the deputy governor of the central bank, Ida Wolden Bache.
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Safe and efficient financial infrastructure. Should central bank money also be issued in digital form?
Norges Bank currently issues central bank money in the form of cash. Central bank money has characteristics that contribute to confidence in the monetary system and the efficiency of the payment system. For central bank money to fulfill these characteristics, it must be available and useful to society.
Norges Bank is examining whether central bank money should also be issued in digital form. The report is motivated by the decline in the use of cash and the need to be cautious about undesirables structural changes in the system money and payments. Recently, Norges Bank decided to continue the study, among others: through experimental tests of technical solutions.
An increasing number of investors have placed funds in cryptocurrencies, and the use of cryptocurrencies may have an impact on security
Recently, an increasing number of investors have placed funds in cryptocurrencies, and payment entities have made cryptocurrencies available as a means of payment for their clients. The technology behind it offers new opportunities, but cryptocurrencies also come with new risks that require new regulations.
- Increased use of cryptocurrencies may impact the security and performance of the payment system. Norges Bank is closely monitoring the changes in the payment system and we want to help make it attractive and safe also in the future in Norwegian kroner - says deputy president of the central bank Ida Wolden Bache.
