Central Bank Governor Ida Wolden Bache announced the decision, stating, "We will not abolish the thousand-krone note as a valid means of payment... " She cited the need for cash in crisis preparedness and for those who cannot use digital solutions. "We are not there yet" regarding electronic systems' independent preparedness, Bache added.
The bank maintained a stock of cash for emergencies, considering the 1000-krone note essential. Although the bank had dialogue with Økokrim and acknowledged that large denominations can facilitate crime, it decided against removal. As a result, banks can no longer order new 1000-krone notes, so circulation will gradually decline.
We will not abolish the thousand-krone note as a valid means of payment. The reason is that we place particular emphasis on cash still having an important function, even though most payments are made digitally.
7 million total. The timeline for reduction and impact on money laundering remain uncertain.
But we have also decided that banks can no longer order new thousand-krone notes. That means the number of thousand-krone notes in circulation will decrease as they are deposited or worn out.
It will still be a valid means of payment, so you can use it as today both to pay and to receive money. But we expect the number to decrease.
Not least important in troubled times. And cash is still important for those who cannot or do not want to use digital solutions.
We have of course included that in our assessment, and we have had dialogue with Økokrim. Cash has some properties that can make it suitable for certain forms of criminal activity, including money laundering. Some forms of crime can be made easier with larger denominations, as Økokrim has pointed out. We have taken that into account.
We are not there yet. Work is underway to strengthen the independent preparedness for electronic payment solutions as well. We believe they are not sufficient now for us not to need cash as part of preparedness.
I think the Norwegian thousand-krone note is the world's most beautiful banknote. The main motif is a wave on the open sea – and a storm is blowing. Now the thousand-krone note itself is in rough weather.