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More control to the bank?

The cash will be replaced, says Executive Vice President of DNB Trond Bentestuen.


Executive Vice President Bentestuen's argument against cash is that it entails large costs: “Security related to cash and distribution is both cumbersome and costly, and in addition, cash is a far less secure method of payment than digital payments. It is not safe to walk around with a lot of cash. In addition, crime and tax evasion are another important issue. Norges Bank can only account for 40 per cent of the total use of cash, which we believe indicates that much of the use may be about the black economy and money laundering. "

What does DNB think of a parliamentary proposal to continue with cash as a valid means of payment?

“There is already a requirement that cash can be used as a means of payment, so such a proposal implies no change from the current situation. We still believe that cash will be phased out over time. However, this is a political issue. We relate to what customers want to use, as well as current legislation, ”says the CEO.

Skeptical about anonymous money. Director Bentestuen believes it is possible to secure privacy with digital money:

“The regulations related to privacy must, of course, be properly addressed. But there is nothing to indicate that it will not work at least as well in a digital world. Anonymity is not just positive. 'Anonymous' cash makes it easier to hide money, and is one of the reasons criminals use cash almost exclusively. Those who take paid "black" prefer cash. Big sums are being shunned by society. ”

What does DNB think about the possibility of new central bank money in circulation if cash is to go away?

“The question should be addressed to Norges Bank. However, DNB is open to any improvement in cash handling that will make the payment system in Norway easier and less costly and resource intensive. ”

The cash disappears. The CEO points out that over 2,3 million people use the Vipps payment service and that only six percent of their customers today use cash daily:

“Cashing out is only a matter of time, and we believe that Norway is among the countries that will be at the forefront of this development. We see this in the customers' payment behavior, which is changing rapidly. In recent decades, Norway has been far ahead with innovation and digitization of banking services, and we wish to continue with this. We have taken the initiative to start a dialogue on phasing out the cash, but are fully aware that this is, among other things, a political issue. The bottom line is that customers are strongly turning their payment behavior towards other means of payment than cash, ”says Trond Bentestuen.

Øystein Windstad
Øystein Windstad
Former journalist at Ny Tid.

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