Norway’s Government Seeks to Strengthen Cash for National Resilience
Apr 8, 2024
Recognising the importance of cash to payment choice and national resilience, Norway’s government is considering legislation to ensure people can always pay using banknotes and coins.
A press release from the Ministry of Justice and Public Security echoes sentiments recently expressed by Sweden’s Central Bank, saying it is exploring a revision of the Financial Contracts Act to recognise people’s right to choose between digital and physical payments and strengthen the nation against situations in which digital infrastructure may fail.
Cash is important for preparedness reasons, while at the same time it provides security for many who find it demanding to use digital payment solutions. The government is today putting forward a bill that strengthens consumers’ right to pay with cash.
First, the Ministry acknowledges ‘an obvious need to strengthen the right to pay with cash’ in support of those who prefer using it. Introducing a clearer ruling on transacting with banknotes and coins ‘will make it easier for customers who want to invoke it, for traders who must follow it, and for the authorities who must enforce it.’
Second, the Ministry highlights the importance of cash as an ‘always on’ payment option, ensuring Norway’s economy will not be rendered completely inaccessible should ‘prolonged power outages, system failure or digital attacks against payment systems and banks… lead to the failure of digital payment solutions.’
The government’s task is to ensure society’s preparedness. Relying exclusively on digital payment solutions increases societal vulnerability, and in certain situations this could contribute to putting important social functions out of play… If no one pays with cash and no one accepts cash, cash will no longer be a real emergency solution when a crisis arises.
The Ministry’s proposal is thus to ensure ‘a consumer will have the right to pay in cash at all premises where a trader sells goods or services.’ Traditional trade in goods would be covered, as would services provided on premises such as cinemas, hotels, restaurants, fitness and wellness centres.
No timeline for the introduction of the new legislation has yet been revealed.