Norway's Finance Minister Trygve Slagsvold Vedum wants to remove the 1000-krone banknote to make life harder for criminals. The proposal was sent to the country's central bank, Norges Bank, in a letter arguing that high-value cash facilitates money laundering and the black economy. Vedum made the announcement while presenting several measures aimed at stopping criminal economic activity.
The Minister's Unexpected Admission
When handed a 1000-krone note during the announcement, the Finance Minister admitted he did not recognize it. 'It's not mine; I haven't used Norwegian banknotes in a very long time,' he said. After a closer look at the blue, wave-patterned note, he added, 'No, I have no idea about that.' This moment highlighted the government's push towards a less cash-reliant society. Vedum stressed the decision ultimately lies with Norges Bank, but his department strongly recommends it. 'It is Norges Bank that decides, but we propose it as one of several measures to combat economic crime,' Vedum stated. 'It will make it more difficult for criminals to pay in cash and launder money.'
The Core Argument Against High-Value Cash
The formal letter from the Finance Ministry to Norges Bank lays out the technical case. It states that cash has inherent vulnerabilities that make it prone to misuse in laundering processes. The key issue is anonymity. 'Cash does not carry a history of previous owners or information about what it has been used for,' the letter explains. It notes cash can be used and stored without a third party registering or preventing transactions. The ministry cites a 2025 police threat assessment which indicates large parts of the cash economy in the Nordic region likely stem from crime. The assessment points out that it is primarily the high denominations that are in demand for these purposes. This forms the core of the government's security argument for phasing out the note.
Quantifying the Shadow Economy
A critical question is the scale of the problem the policy aims to address. When asked for evidence directly linking banknotes to criminal use, Vedum pointed to broader economic estimates. 'Samfunnsøkonomisk Analyse estimated in 2022 that the black economy alone costs society 80 billion kroner,' he said, 'of which 32 billion kroner is seen as directly lost tax revenue.' He acknowledged a precise breakdown for cash used in black markets is not possible. 'The black economy is difficult to measure because it is kept away from the authorities,' Vedum admitted. 'But we know that parts of the black economy are conducted with cash.' The ministry also referenced data from Økokrim, Norway's economic crime unit, to support its stance on the criminal use of high-value cash.
Analysis: A Digital Push with Practical Hurdles
This proposal is not just a crime-fighting measure. It is a significant step in Norway's ongoing digital transformation, a trend closely watched in tech hubs from Oslo to Trondheim. The move aligns with a societal shift where digital payments are the norm for most citizens, as hinted at by the Finance Minister's own unfamiliarity with cash. However, the analysis must consider several implications. Firstly, while targeting criminal activity, the policy would also impact legitimate users who rely on cash for privacy, as a backup, or due to digital access limitations, particularly in rural areas or among older populations. The removal of the highest denomination effectively raises the bulk and weight of large cash amounts, acting as a physical deterrent to large-scale cash transactions of any kind.
Secondly, the international context matters. Norway would not be the first to take this step. The European Central Bank stopped producing the 500-euro note in 2019, citing similar concerns. The Norwegian krone, however, is not the euro, and the move could influence discussions in other Nordic countries about their own high-value notes. Finally, the authority dynamic is crucial. The government can only propose; Norges Bank has the sole mandate to issue and withdraw banknotes. The central bank must now weigh the government's security concerns against its responsibilities for maintaining a functional payment system for all Norwegians. Its decision will set a precedent for how deeply crime prevention can dictate the design of a national currency system.
The Road Ahead and Cultural Shifts
The fate of the 1000-krone note now rests with Norway's central bank. Norges Bank will conduct its own review, considering the government's security arguments alongside economic stability and public need. The blue 'wave' note, a modern design that replaced portraits of national icons like Edvard Munch, may itself become a relic. This process highlights a deeper cultural shift. Currency is both a practical tool and a national symbol. Removing a banknote for security reasons underscores how the fight against economic crime is reshaping even the physical objects in our wallets. As Norway continues its digital leap, the debate over the thousand-krone note forces a question: in the balance between absolute payment efficiency and preserving optionality, where should the line be drawn? The answer from Norges Bank will reveal much about Norway's priorities for its future economy.