Sweden’s Central Bank Tests Central Bank Digital Currency

Sweden’s Central Bank Tests Central Bank Digital Currency

Sweden’s central bank (known as Riksbank) began testing its central bank digital currency (CBDC) named ‘e-korna’ to show how the public will use it.

Accordingly, the CBDC pilot will be based on distributed ledger technology (DLT) in an isolated test environment. This will help the central bank to increase its knowledge on the project.

No decision taken yet to issue ‘e-korna’

The Riksbank stated that the project is mainly for research, as no decision has been taken on issuing the currency.

“The aim of the project is to show how an e-krona could be used by the general public. Thus, a digital krona should be simple and user-friendly. In addition, it should fulfill critical requirements for security and performance,” the central bank stated.

In the test, simulated users will make deposits and withdrawals via a mobile app.

For his part, Gavin Smith, CEO of Panxora, said:

“With leading cryptocurrencies continuing to grow, countries are becoming aware of the need for the versatility that digital tokens can provide. Despite being built around a different set of conditions, central bank e-money is nonetheless a valuable addition.”

“As e-money moves the mainstream market towards acceptance of digital tokens, this could also expand the use of existing cryptocurrencies and make the overall digital token ecosystem more mainstream and valuable,” he added.

Earlier, Cryptolydian reported that representatives of some central banks presented their initiatives around the central bank digital currencies (CBDCs) in the one-day conference that was held in Kyiv, Ukraine last week.

The event was hosted by the National Bank of Ukraine (NBU), the central bank of the country, which has started its digital currency pilot in 2018.

The discussion is taking place at a time when the US and China are seriously exploring the possibility of issuing a CBDC. However, it seems that China is lagging behind the US in this regard.

In early 2016, Ukraine’s central bank started to explore the digital currency dubbed as ‘e-hryvnia’. In 2018, NBU tested the token that runs on a Stellar blockchain fork or a modified copy.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.