In a speech at Finance Norway’s Payments and Digitalisation Conference, Torbjørn Hægeland, Norges Bank’s director of financial stability, called for investment in payment contingency arrangements and reviewed plans for closer European settlement cooperation. Broader payment options should support both competition and the ability to maintain essential services during crises. Banks should enable the domestic BankAxept card scheme in payment apps, while private providers should develop more instant payment services using central bank settlement infrastructure. Dependence on a few global providers risks limiting competition and Norway’s ability to maintain critical payment functions. Individual firms and the financial industry bear the main responsibility for implementing contingency measures and making the necessary investments. Preparations must assume that even well-protected systems can become unavailable. Norwegian security authorities have brought forward the recommended date for making IT systems resistant to quantum threats from 2035 to 2030, increasing the urgency for firms without transition plans. Artificial intelligence payment agents present another potential vulnerability: reliance on common services, data or decision models could trigger simultaneous transactions that strain payment infrastructure and increase settlement liquidity needs. Norges Bank has already agreed with the European Central Bank to use its TIPS platform for instant settlement in Norwegian kroner, with the connection scheduled for 2029. A conclusion on Norwegian participation in the Eurosystem’s T2 settlement system is targeted for early 2027. Closer European cooperation must preserve sufficient control and operational freedom to maintain critical functions during severe disruptions. The bank is also examining settlement of tokenized transactions in central bank reserves. An established technology sandbox will test potential risk reductions and efficiency gains, with several banks and banking groups signed up to participate.
Norges Bank urges payment contingency investment and reviews plans for TIPS connection in 2029
Speaking at Finance Norway’s Payments and Digitalisation Conference, Norges Bank Director of Financial Stability Torbjørn Hægeland urged firms to invest in contingency arrangements and expand payment alternatives to reduce dependence on a few global providers. He highlighted emerging risks from quantum computing and artificial intelligence payment agents. Existing plans envisage connecting Norwegian krone instant settlement to TIPS in 2029, while Norges Bank aims to conclude its assessment of participation in the Eurosystem’s T2 settlement system in early 2027.