Sweden is going to test its digital currency named e-krona which seems to be striving to develop the state’s central bank digital currency (CBDC). Sweden will pass e-krona via proper banking trial between two banks Riksbank and Handelsbanken for assessing the possibility of e-krona, before declaring it being its official digital currency of the state.
Riksbank exclaimed that in this evaluation, withdrawals, payments, and deposits will be done by e-krona through digital wallets. Formerly via Reuters, Riksbank disclosed its handful of collaborations with the World Economic Forum (WEF) for incorporating their blockchain network. One of the causes behind the e-krona pilot project is that over 50% of the country’s population possesses digital currency. This project is introduced out of the fear that in no time cryptocurrency will be the only alternative for payments.
However, Riksbank mentioned that the pilot project will use blockchain technology and it also assured that transactions through this project will be much faster. In addition, Riksbank further stated that it has not yet finalized whether or not the pilot project of e-krona will be able to predict the exact scenario of general banking as it is being tested in a remote environment. Stefan Ingves, the governor of Riksbank, had announced recently that Sweden will have its digital currency in the next five years. The pilot project of e-krona is speeding this assertion. Up till now, there is no declaration has been publicized by Sweden about the dispensation of e-krona as the digital currency as more tests are to be done in the future.
CBDC: A quest
Several organizations are cooperating for the establishment of Central Bank Digital Currency (CBDC). In the last year, CBDC turned out to be one of the widely discussed matters around the globe. In this quest for launching a central bank digital currency, several countries had strived.
Being an enormous part of the world’s economy, China struggled for developing the first CBDC and working on Digital Yuan, while on other hand Bahamas left it behind by announcing Sand Dollar as its authorized digital currency. It seems that the other central banks will also introduce their digital currencies soon.
Central Bank Digital Currency (CBDC) is the form of digital currency which is centralized as it is controlled by the central bank of a country. It provides an alternative way for payments and other money transactions unlike conventional methods of payments which are prone to be manipulated for not being much secure.