Riksbank, the Central Bank of Sweden announced that testing of e-krona has started in the country. This move is a step closer to the launch of the world’s first central bank digital currency (CBDC) which will run on blockchain technology.
Countries across the world are moving forward to launch Central Bank Digital Currency. While everyone is focussing on China, Sweden has been moving ahead. Riksbank confirmed that it is working to evolve the currency with consulting firm Accenture. The pilot project is expected to run in February 2021.
The circulation of e-krona in future will be utilized to provide everyday banking activities like payments, deposits and withdrawals from crypto or digital wallet as per the recent statement of Riksbank. The bank aims the working of e-krona to be as swift as sending a text.
Being one of the most developed countries, Sweden is one of the less cash-dependent countries. According to Reuters, Sweden holds only 1% of its GDP as banknotes. This fact can explain that adoption of digital currency can be more accessible and higher in the country as people are acclimatized with the digital form of payments.
The popularity of digital currencies has prompted governments all across the world to re-evaluate their currencies. Most of the countries are moving towards the idea of Central Bank Digital Currencies (CBDCs). The CBDC stand on the vision of traditional digitized currency.
It had been reported that Venezuela has already launched Petro, China is extensively working towards its digital currency. Recently, the US Fed hinted towards discussions related to digitizing the dollar to keep pace with the latest trends.
While the launch of new CBDC,(which is traditional money in a digitized form issued and governed by the central bank of the country ) may undermine traditional cryptocurrencies (which are decentralized), but it is stepping forward to expose millions of people to the revolutionary digital financial system.