Financial Infrastructure Report 2023 highlights the need for enhanced cybersecurity and innovation in Norway’s payment system
Date: [25, May 2023]
In a bid to ensure a secure and efficient payment system for the future, Norges Bank, the central bank of Norway, emphasizes the necessity of bolstering contingency arrangements and strengthening cybersecurity measures. Today, Norges Bank released its Financial Infrastructure Report 2023, along with Norges Bank Papers 1/2023 titled “Retail payment services 2022,” shedding light on the state of the country’s financial infrastructure and the need for further enhancements.
Deputy Governor Pål Longva stresses the intensified risks and expanded threat landscape, stating that maintaining a secure payment system requires collaboration between individual entities and effective public-private cooperation. Cyber incidents have the potential to spread rapidly across sectors, necessitating a broader context for contingency work in various sectors.
To fortify the cyber resilience of financial sector entities and promote financial stability, Norges Bank and the Financial Supervisory Authority of Norway, Finanstilsynet, have introduced a framework for testing the resilience of the banking and payment systems. This testing, which simulates real attacks, is already underway, with the goal of enhancing the cybersecurity measures of financial institutions.
The payment landscape continues to evolve with the emergence of new technologies, payment methods, and providers. Deputy Governor Pål Longva emphasizes the importance of making significant choices in designing the payment system. Over the next few years, Norges Bank will thoroughly study and make decisions regarding the future design of its settlement system. Additionally, the bank is intensifying its efforts towards exploring the feasibility of a central bank digital currency, a significant development that could shape the future of Norway’s financial system.
While regulatory frameworks for crypto-asset markets are being developed worldwide, it remains uncertain how long this process will take. Deputy Governor Pål Longva suggests that Norwegian authorities should consider the possibility of moving forward more swiftly instead of waiting for international regulatory solutions. Norges Bank stands ready to contribute to such assessments and promote responsible innovation through effective regulation.
As the payment landscape continues to evolve and cybersecurity risks persist, Norges Bank’s Financial Infrastructure Report serves as a reminder of the imperative need for strengthened contingency plans and enhanced cybersecurity measures. By prioritizing innovation and collaboration, Norway aims to maintain a secure and efficient payment system that will benefit its citizens in the years to come.