Cash in Norway is losing significance. Minister wants new limits and withdrawal of the banknote

The decision is related to the decline in cash usage and the fight against economic crime. New data shows that the high denomination is increasingly rarely used in legal transactions. At the same time, it remains significant for the black market.

The share of cash in payments in Norway has been systematically decreasing. In March 2025, it accounted for 2 percent of the number of transactions. In 2017, it was 12 percent. In terms of value, cash represented only 1 percent of payments.

The average value of banknotes in circulation in 2024 was NOK 34.3 billion. In 2017, it was NOK 42.4 billion. The 1000 and 500 NOK banknotes alone accounted for a total of NOK 26.1 billion. The 1000 NOK denomination made up NOK 7.5 billion of this amount.

According to Økokrim (the Norwegian agency for combating economic and environmental crime), a significant part of the demand for cash comes from criminal activity. Police indicate that in the Nordic countries, it is the high denominations that are particularly sought after. Økokrim has publicly advocated for the elimination of the highest banknote.

The Ministry emphasizes that cash leaves no transaction trail. It can be stored and transferred without the involvement of third-party institutions. This increases the risk of its use in money laundering. At the same time, cash serves as a reserve and supports financial inclusion.

Norges Bank has previously analyzed the issue of the 1000 NOK banknote and kept it in circulation. However, since that decision, payment methods and the scale of digitization have changed. Denmark withdrew its 1000 kroner banknote in 2025. The Ministry of Finance now expects a new, up-to-date assessment of the denomination structure.