Sweden Begins Testing Europe’s First Central Bank Digital Currency

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Digital Currency

Riksbank revealed that it had now begun testing an e-krona, which takes the country a step closer to the creation of the world’s first central bank digital currency.

The solution will be based on blockchain technology, and the purpose is for the e-krona to function as a complement to cash, where the state guarantees the value of the money.

The test is run together with the IT company giant Accenture and will run until February 2021.

The announcement about the pilot project started was published on the official website of the Riksbank.

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Executive Opinion

The central bank said, “The Riksbank is reviewing the possibility of issuing a digital complement to cash, an ‘e-krona,’ and whether it could support the Riksbank in the task of promoting a safe and efficient payment system. It would also reduce the risk of the krona’s position being weakened by competing for private currency alternatives. There is currently no decision on issuing an e-krona, how an e-krona might be designed, or what technology might be used. The main purpose of the pilot is for the Riksbank to increase its knowledge of a central bank digital krona.”

Riksbank said, “A digital krona should be simple, user-friendly as well as fulfill critical requirements for security and performance.”

More about the digital currency

Many other central banks are actually exploring the possibility of launching a central bank-issued digital currency, and among these countries are India, Sweden, Turkey, China, Japan, and others.

On the other hand, Libra, a Facebook digital currency that is also about to launch by the end of this year.

The narrative of the state issues digital currencies comes after the growing popularity of Bitcoin and Blockchain, Bitcoin underlying technology.

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