Norway’s central bank, Norges Bank, has backed the EU’s Markets in Crypto-Assets Regulation (MiCA) as it considers a central bank digital currency (CBDC).
Project Director Kjetil Watne noted that while MiCA provides a helpful regulatory base for Norway as an EEA member, further regulations may still be required for financial stability.
Although a final decision on a CBDC hasn’t been made, Norges Bank is assessing how it could coexist with cash and digital assets while addressing gaps in decentralized finance oversight. Norway’s recent involvement in “Project Icebreaker” examined cross-border CBDC use, though details remain to be worked out.
On privacy, Norges Bank reassured that it wouldn’t monitor individual transactions, and any CBDC would comply with anti-money laundering rules.
Meanwhile, some concerns surround MiCA’s mandate for stablecoin issuers to hold substantial reserves in European banks, potentially exposing these reserves to vulnerabilities due to banks’ lending practices, as noted by Tether CEO Paolo Ardoino. MiCA is set to take effect on December 30.
Efforts to create a clear legal framework for U.S. stablecoins took a hit this week after the Senate failed to push forward a key piece of legislation.
Bhutan is taking a bold step in merging tourism and digital finance by enabling crypto payments for visitors across the country.
Coinbase CEO Brian Armstrong is pressing U.S. lawmakers to revive momentum behind the GENIUS Act, a bipartisan bill aimed at introducing federal oversight for stablecoins.
A controversial stablecoin bill is now facing mounting opposition in Washington, with Senator Elizabeth Warren leading the charge against what she calls a pathway to “crypto corruption.”