Norway’s largest bank, DNB says that banking is now outdated and cash should be completely phased out.
Citing the “dangers and disadvantages” of cash, an executive from the bank said that Norway should start the process of becoming cashless straight away.
The Local.no reports:
Norway’s largest bank, DNB, has said that cash has fallen out of favour with everyday Norwegians and is instead primarily used on the black market and in laundering schemes.
“Today, there is approximately 50 billion kroner in circulation and [central bank] Norges Bank can only account for 40 percent of its use. That means that 60 percent of money usage is outside of any control. We believe that is due to under-the-table money and laundering,” bank executive Trond Bentestuen told VG.
“There are so many dangers and disadvantages associated with cash, we have concluded that it should be phased out,” he added.
Bentestuen said that only around six percent of the Norwegian population uses cash daily, with the numbers higher amongst the elderly.
The Ministry of Finance is opposed to DNB’s proposal and the bank official acknowledged that going completely cashless “will likely take some time” but suggested that the process should be started now, for example by discontinuing 1,000 kroner notes..
Bentestuen said that the entire banking system is now outdated.
“Eighty-five percent of our customers say that they never or only very rarely go to the bank. Therefore we think it is a mistake to maintain a very old structure with local branch offices. It is better to follow the customers and improve the offers where the customers are: digital,” he told VG.