Ida Wolden Bache: Central bank digital currency and real-time payments Speech by Ms Ida Wolden Bache, Deputy Governor of Norges Bank (Central Bank of Norway), at Finance Norway's Payments Conference, 5 November 2020. * * * Accompanying charts can be found on the website. Please note that the text below may differ from the actual address. Introduction Chart 1 Changing payment landscape Thank you for the invitation to speak here today. For anyone interested in payment systems, this conference is an important meeting place – and that applies equally to this year’s conference, with its many digital participants. The payments landscape in Norway is changing. Technological advances, user preferences and globalisation are strong driving forces for change, offering opportunities but also posing challenges: How can we ensure the existence of an efficient system for payments in NOK while at the same time safeguarding security? How can we improve the common infrastructure for payment services? How can we best promote competition and innovation? The private sector, organisations and authorities must together and individually work to further develop the payment system. Norges Bank is responsible for promoting an efficient and secure payment system. This is why we are now assessing whether there is a need for central bank digital currency and whether Norges Bank should expand its operational role in real-time payment settlement. This is the theme of my remarks here today. A changing payments landscape Changes in payment patterns have accelerated during the Covid-19 pandemic.
The launch that we are witnessing today is a major initiative, the development of a Shariah standard that is integrated with details on operational requirements. This approach ensures a transparent basis of Shariah rulings by the SAC, and provides a convergent in understanding between Shariah scholars and industry practitioners. In judiciary matters, where the SAC serves as a reference point in analysing muamalat cases, the court can also draw on these comprehensive and transparent Shariah standards as basis in arriving at a court ruling. The adoption of the standards by learning institutions will pave the way for greater understanding and acceptance of these standards as a global starting point of reference for the Islamic finance community. As we launch the Educator’s Manual, which is the first of 14 series of manuals, I would like to share my thoughts on our approach in developing the Shariah standards, and would also like to emphasise the importance of embracing diversity and mutual respect in Shariah interpretations. I shall deliberate on two additional areas that stakeholders need to consider to maximise the benefits of having the Manual; reconfiguration of academic programmes and strategising talent deployment. The future growth of Islamic finance, especially cross border, is very much dependent on the harmonisation and mutual recognition of Shariah views and rulings across the globe. It is critical if cross border trades are to be strengthened. Numerous efforts are being pursued to narrow the opinion gaps between scholars through symposiums, roundtables as well as bilateral dialogues.