Can Sweden Become the First Nation to Adopt a National Cryptocurrency?

Sweden is known around the world not only for its beautiful landscapes, but also for the high number of cashless transactions. This country is moving into an economy where cash payments will become obsolete. Some studies circulating during the last days say that Sweden could be the perfect country to launch a cryptocurrency. Why? Because of the low cash usage rate that the country has.

Swedish National Cryptocurrency

James Pomeroy, an economic analyst at HSBC, Sweden could be the first country to issue its own cryptocurrency. One of the main reasons of this possibility is the low amount of cash used to perform transactions. Most of the transactions are performed by different electronic payments and cash is highly discouraged as a means of payment.

The Swedish Central Bank could take the leading role and issue a digital currency to be used by the Swedish Population. The study performed by the HSBC calls “e-krona” to the electronic version of the currency of Sweden. It would be important to distinguish whether the virtual currency will be a cryptocurrency or not. About this, the HSBC analyst explained:

“A Central Bank Cryptocurrency would use blockchain technology, whereas a non-blockchain solution would make the e-Krona a ‘deposited currency account’.”

There are two possible ways in which a centrally issued digital currency could work. According to the Sweden’s Riksbank, one possibility is based on value, and the other is on a register system. According to the HSBC, the option based on value ‘would be more like cash is at present with value stored on an app or a card rather than in a central database.’

The second option may be more complex, according to Pomeroy. But it could also make the framework easier to expand and develop over time. In addition to it, the currency would be likely to require the use of Blockchain technology.

There are several countries that are considering to issue their own cryptocurrencies. We can mention Russia, with the CryptoRuble or Venezuela and the Petro. Other countries like Canada or England are seriously thinking about this possibility. Furthermore, Ukraine has also shown interest in creating a digital currency not based in blockchain: the e-Hryvnia.

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