Norges Bank Investment Management Prepares for Cyberattack and CBDC
Posted on 06/05/2023
In the wake of cyberattack warnings from Blackberry to Federal Reserve Chairman Jerome Powell, Norges Bank says contingency arrangements in the payment system should be strengthened. The US$ 1.3 trillion sovereign wealth fund giant seems concerned with vulnerabilities. While Norges Bank insists the “financial infrastructure in Norway is secure and efficient,” the payment system needs help.
Deputy Governor Pal Longva says: “Risks have intensified and the threat landscape has expanded. Maintaining a secure payment system requires the efforts of individual entities and effective public-private cooperation. Cyber incidents can quickly spread across sectors, and contingency work in the various sectors must therefore be viewed in a broader context.”
According to Norges Bank, “Testing, which simulates real attacks, is now under way. The purpose is to strengthen the cyber resilience of financial sector entities and thus promote financial stability.”
There is a possibility that the payment system upgrade requested and the introduction of a Central Bank Digital Currency would, in fact, be designed to work together. Longva mentioned that the financial leaders in Norway “Are stepping up our work on a central bank digital currency. There is ongoing work worldwide to develop and establish regulation for crypto-asset markets.”
Norway has been working on its central bank digital currency since 2016 and is now said to be in its fourth phase. Longva says this digital currency will be “responsible innovation.”
Keywords: Norway Government Pension Fund Global.
