Norway, which is globally recognized as one of the world’s most cashless societies and economies, appears to have made it simpler to settle transactions with cash.
In what appears to be a significant change in the trend towards avoiding cash transactions, the government and reserve bank of Norway seems to now be supporting cash payments. Merely 3% of Norway consumers reportedly used cash in their most recent purchase in a physical shop. This, according to a survey shared by the nation’s central bank.
In order to address this trend, a key amendment to Norway’s Financial Contracts Act came into effect earlier this month which aims to support consumers’ rights to settle transactions with cash at retail outlets. These efforts are usually intended to help consumers who may not be as technically-savvy or familiar with using all-digital platforms and services.
Norway’s Norges Bank stated and clarified that Section 3-5 (1) of the Central Bank Act requires that banknotes and coins issued by Norges Bank are considered to be “legal tender.”
It also mentioned that no one is required to accept over 25 coins of each denomination as part of a particular transaction. But the Act doesn’t explain in detail what actually legal tender entails or implies.
According to an update from Zero Hedge, one of the key justifications for the legislation is to support the (approximately) 600,000 consumers residing in the European nation who usually find it challenging to make virtual payments, and who seem to have been excluded from the retail sector.
It’s worth noting that many Norway-based pensioners are looking forward to the perhaps unexpected change in law.
However, the majority of consumers are still in favor or contactless payments. With the rise of digital platforms and services, which has accelerated following the COVID outbreak, it has become more practical for many more consumers and businesses to complete all-digital transactions.