Iceland CBDC Tracker

Iceland is in the research phase of its central bank digital currency (CBDC) development. According to a spokesperson for the Central Bank of Iceland, the central bank is focused on following the CBDC developments abroad. However, it has yet to see a reason to go beyond this step.

CBDC History and Development

In 2017, the Central Bank of Iceland hosted a seminar considering “possible new forms of central bank money.” Part of the discussion involved discussing “research findings concerning CBDC to date and analyse some of the challenges central banks face in adopting blockchains.”

In 2018, the Central Bank of Iceland published a CBDC report that ultimately said, “The report does not recommend that [a CBDC (the rafkróna)] be introduced, and no decisions have been taken on the matter.”

In 2022, a spokesperson for the Central Bank of Iceland said, “The priority of the Central Bank of Iceland currently is to follow closely CBDC research and pilot projects of leading central banks, BIS, and others, analyze potential policy goals and associated trade-offs.”

Human Rights and Civil Liberties Concerns

Iceland earned a 94 out of 100 in Freedom House’s 2024 Freedom in the World report. Even then, however, it’s important to recognize that the creation of a CBDC could open the door to risks to financial privacy and financial freedom.

For additional information on concerns regarding violations of human rights and civil liberties, see the following reports by Amnesty International, Financial Tyranny Index, Freedom House, Human Rights Watch, Privacy International, and the U.S. Department of State. For additional information on concerns regarding the risks of CBDCs, see the following webpage and report by the Cato Institute: The Risks of CBDCs and Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths.

For additional information regarding metrics, the methodology page explains each of the data points and provides their respective sources.