Home Business Central Banking Sweden's Central Bank begins its CBDC ‘E-Krona’ testing

Sweden’s Central Bank begins its CBDC ‘E-Krona’ testing

Years after the Sweden Central Bank, Riksbank, announced it was considering building its own digital currency, it has reportedly started testing the ‘e-krona’.

Ths testing of the e-krona is to certify its possible use.

The e-krona is a blockchain-based digital currency that will not displace cash in Sweden, but will only support it.

The pilot project, according to reports, will be conducted in “an isolated test environment” with digital tech specialists supervising it.

Details of the e-krona

The goal of the project is to demonstrate how an e-krona could be utilized by the public.

While the Riksbank is experimenting with whether the e-krona can be used by the general public, they noted it is supposed to fulfill specific standards if it will be launched.

These specific standards are important for safety and operation.

It should also be easy and user-friendly.

In addition, the test is supposed to check if the user makes use of a digital wallet in making payments, withdrawals, and deposits.

It will also be used through debit cards and smartwatches.

The Swedish Bank will partner with some financial institutions to talk about central bank digital currencies while the pilot project keeps running till next year February.

However, in spite of the test, there’s no authorized evidence corroborating the Riksbank claim of launching the CBDC.

E-krona will not replace cash

Severally, Riksbank has stated the currency won’t replace cash in Sweden, even though its use has been gradually reducing.

According to statistics, in 2010, 40 percent of Swedes used cash for payments, while only 13 percent used it in 2018.

However, even if the e-krona takes off, the report states that the Riksbank will keep on issuing coins and notes to meet the needs of the people.

Other central banks, including the European Central Bank, are contemplating launching their own digital currencies as well.

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