CBDC from Sweden: E-krona is Ready to Digitalize the Country

The world is stepping up to the new frontier – global digitalization. Technology is developing rapidly, and with its advances, the electronic payment methods are becoming more commonplace.

Thus, the usage of metal coin and paper banknotes is becoming old-fashioned. In a way, the future change of the whole financial, monetary system is a matter of time.

CBDCs are quite a hot topic today, a couple of months ago, China’s Central Bank has started working on its digital currency.

Sweden is the second country to unveil it’s been developing a digitalized national currency.  However, even though China was the first one to tease the idea of CBDC, its developments are not as prominent and cohesive as Sweden’s.

It was recently announced Sweden has started testing its new Central Bank Digital Currency, e-krona. The pilot program will operate for one year, until February 2021.

E-krona: The Riksbank’s revolutionary project

Sveriges Riksbank or simply the Riksbank has analyzed the need for an e-krona. As the central bank of Sweden, it has consulted several other national and international agents to make sure the new e-krona project was suitable for the existing financial technologies and would not have any legal issues.

The Riksbank has clear mandates and rules to issue an e-krona, considering all economic and constitutional legislations.

The Idea Behind E-krona

The Riksbank’s development team is aiming to make e-krona available and user-friendly for the public.

In addition, the new blockchain-powered currency would drive regular payments and banking activities throughout the country.

Also, launching a CBDC in Sweden is not just whimsy, or a wish to become the first country to have a fully digitalized national payment systems, but a normalized necessity.

Moreover, the country is already one of the most cashless societies in the world. Purchases usually happen as digital transactions — by card, online, or with Sweden’s most popular mobile payment app, Swish.