If the government approves of an e-krona, the country’s central bank has indicated that it is planning to issue one.
According to a Dec. 15 statement, Sweden’s central bank, Riksbank, is preparing to introduce a possible central bank digital currency (CBDC) — the e-krona.
Riksbank said that it is “ready to be able to issue an e-Krona” if Sweden’s legislature, the Riksdag, chooses to proceed with the asset’s creation. The central bank said it is “therefore working to prepare for an issuable e-krona.”
As such, an e-krona would “ensure that we preserve several of the functions of cash in a future where cash is no longer used,” Riksbank explained.
Riksbank also stated that it has been working with the consulting firm Accenture on a pilot project involving an e-krona since 2020. The pilot’s second stage concluded this year. The pilot is now in its third stage and will run until 2023.
Riksbank stated that it is looking into technical ways for an e-krona to be used. It specifically considers how to distribute CBDC to the general public and which participants can be involved with the asset.
The bank is also investigating legal issues concerning the e-krona, such as data protection, financial secrecy, and asset classification. Furthermore, in 2022, it solicited input from various sources through a dialogue forum and a Request for Information (RFI).
Despite apparent progress, Riksbank stated that Sweden’s legislature, the Riksdag, has yet to decide whether to introduce an e-krona.
It was stated that the government began investigating the possibility of issuing the CBDC in December 2020. The investigation’s findings have been pushed back from November 30, 2022 to March 31, 2023.
The news today provides little certainty about Riksbank’s immediate plans, but it strongly suggests that the bank is closer to a working solution than previously thought.
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