Sweden could have its own central bank digital currency (CBDC) in the coming years. According to Sweden’s Central bank, Riksbank, the country is trying to adapt to a new cashless society. In a recent report, the central bank explains that it will be helping those groups that cannot adapt to a cashless society implementing a digital currency.
Sweden Could Implement a Digital Currency
In Sweden, the general society has adapted pretty well to digital and cashless payments. However, there are some groups that cannot be fully adapted to these new times. For example, the oldest individuals or those with disabilities. In order to solve these issues, the bank wants to create an e-Krona which will be used in addition to cash.
About it, the bank wrote:
“There are currently groups in society that are encountering problems as cash use declines because they find it difficult to use digital payment solutions for one reason or another. Such groups include older people, people with disabilities or those who, for different reasons, do not have access to payment instruments other than cash. Since it cannot be expected that the private market fully cater for these groups, the sate can choose to take greater responsibility for them.”
The e-Krona would work in a similar way to cash and would become a primary financial instrument in the country. According to the Swedish central bank, private entities could face some problems in the payment sector. If there is a crisis situation, these entities don’t want to take full responsibility for the payment system.
As per the bank, a pilot program could start to be developed in 2019. However, it will not be fully implemented until 2021 if everything goes as planned.
Although the e-Krona will be a digital currency it will not share all the characteristics of cryptocurrencies. The e-Krona will be controlled by the state and backed by fiat currency, the Swedish Krona. However, it will be easy to transfer, manage and store.
We wrote in April at UseTheBitcoin that Sweden could be planning this e-Krona based on IOTA’s Tangle network. The bank is also working and negotiating with other companies to have everything ready for the launching.
Sweden could become the first country to develop and implement a central bank digital currency. However, there are many other banks around the world planning similar developments. Sweden’s neighbour, Norway, could also create a digital currency. Other countries such as Canada or the United Kingdom could also develop a CBDC.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.