On Feb. 18, 2025, NOR CB issued consultation letter/attachments on next generation settlement system in Norwegian kroner and participation in the T2 settlement system.
Further to studies, NOR CB's assessment is that participation in T2 along with Nordic countries is best choice for an efficient, secure payment system in the long term.
NOR CB invites input from the financial industry and other stakeholders regarding participation in the Eurosystem's common platform T2, accordingly.
In this consultation, NOR CB seeks input on functionality, implementation projects, and opportunities and innovation that T2 participation can provide for organizations.
A final decision will be made after the necessary clarifications have been made.
Possible agreement on participation in T2 could be ready by end-2025 at the earliest.
NOR CB requests responses to the consultation by May 16, 2025.
On Feb. 4, NOR CB initiated dialogue with ECB on T2 settlement.
NOR CB initiated formal dialogue with ECB on participation in T2 settlement system.
Follows NOR CB Nov. 2024, payment system responsible innovation, see #232816.
NOR CB has reviewed two alternative directions for the next generation settlement system, and assesses that participation in the settlement system (T2) is best choice.
To acquire a new dedicated platform for NOR CB as it currently has is one option.
Another is to connect to a common platform via T2 as its Nordic neighbors have done.
T2 Settlement Best Choice
As such, NOR CB has considered, together with the Nordic countries, that T2 is the best choice for an efficient and secure payment system in the long term.
NOR CB is now initiating formal dialogue with ECB for remaining clarifications before it makes a final decision, as it considers T2 better for security, and functionality.
Also, in terms of demands for security and preparedness, this endeavor makes it more resource-intensive to operate a stable, efficient and secure settlement system.
There is a need to tackle threats with large resources and sophisticated cyber attacks.
At the same time, there are few providers in the supplier markets for settlement systems, and central banks in NOR CB's neighboring countries have decided to use T2.
As such, it will no longer be possible for NOR CB to cooperate with them on supplier follow-up and further development of a dedicated platform.
Going forward, NOR CB believes that participation in T2 will make it better equipped to meet future requirements for security, preparedness and functionality.
It will also ensure equal development of settlement systems in the Nordic region.
Dialogue with ECB for Clarifications
On Nov. 29, 2024, NOR CB and ECB signed an agreement for Norway to join TARGET Instant Payment Settlement (TIPS) for instant payments settlement in kroner.
NOR CB's dialogue with ECB on T2 involves information exchange for clarifications.
This is necessary as more information is needed for some remaining questions related to security and preparedness, and also in designing a model for smaller banks.
NOR CB will continue the dialogue with other authorities and involve the industry and other market players where relevant, and make a final decision following clarifications.
NOR CB said an agreement on participation in T2 may not be ready until end-2025.
Feb. 18, 2025 Consultation on T2 Settlement
On Feb. 18, 2025, NOR CB issued consultation letter/attachments on next generation settlement system in Norwegian kroner and participation in the T2 settlement system.
Further to studies, NOR CB's assessment is that participation in T2 along with Nordic countries is best choice for an efficient, secure payment system in the long term.
NOR CB invites input from the financial industry and other stakeholders regarding participation in the Eurosystem's common platform T2, accordingly.
In this consultation, NOR CB seeks input on functionality, implementation projects, and opportunities and innovation that T2 participation can provide for organizations.
A final decision will be made after the necessary clarifications have been made.
Possible agreement on participation in T2 could be ready by end-2025 at the earliest.
NOR CB requests responses to the consultation by May 16, 2025.
