“Issuing a rafkróna would call for a re-evaluation of the Central Bank’s tasks and a review of various provisions of current legislation. No matter whether the rafkróna were issued as base money or via rafkróna accounts, the system could be in full operation and available to the public year-round, or it could function as a contingency measure.” CBI
The Central Bank of Iceland is an independent organization responsible for price stability, financial stability, and financial activities.
The CBI has been a leading thinker in the CBDC space and has been included in the BISH (Nordic Centre).
The CBDC question was addressed in terms of financial stability in 2021 and in terms of payment intermediation. The risks of digitization were stated –
Furthermore, from the standpoint of retail payment intermediation, digital payment innovations could pose greater risk.
This was in the context of control being passed outside of the Icelandic jurisdiction for settlement.
The interim paper in 2018 described in detail the CBI position.
The name of a possible digital currency by the CBI was the Rafkróna. The 2018 paper went into detail about the three factors determining the issuing decision of a CBDC.