Sweden Testing E-krona Its New Digital Currency
February 21, 2020 4:48 pm
Sweden is testing an e-krona, a new Central Bank Digital Currency (CBDC). Riksbank, the Swedish central bank, declared a test for an e-krona targeted at the global public. E-krona’s resolution is formed by Accenture using the Corda enterprise blockchain. In last year December, Accenture won the contract to monitor the e-krona. The initial test will be in process for one year, till February 2021 as the project is planned as a learning exercise.
Test users will collect e-krona in a digital wallet, allowing them to make and receive payments and there will be resolutions for smartwatches and cards as well. The design of the currency might impact the Swedish economy.
In December, The Bahamas started a CBDC pilot program and plans a complete rollout someday in the second half of 2020 and after the Bahamas, Sweden is the second country to reveal what would seem to be a true, operating national cryptocurrency.
The e-krona can be used for retail payments, person to person payments, or transfers to and from bank accounts. To use the wallet, the participant needs to be active by a connection to the distributed ledger technology (DLT) network, essentially banks. In exchange for e-krona, the banks will have to exchange deposits in the central payment system. The central bank also allows for indirect participants & direct participants that operate nodes will require to have access to RIX. The central bank regulates the private DLT network and is the only one that can pick who can add a node.
No one is abandoning cash as fast as Sweden, the country is already one of the most cashless countries in the world. Because of the declining cash mode, the Swedish central bank is intended to explore a CBDC.In Sweden, particularly larger cities, going cashless is growing. People usually accept digital transactions — by card, online or by Sweden’s famous mobile payment app, Swish.