The Central Bank of Sweden, Riksbank, plans to introduce a national digital currency project in the country to fast-track the cashless economy that is becoming dominant in the country. The plan is an attempt to hijack the cashless economy from the reach of the private sector to avail proper stability.
Sweden’s Cashless Economy
Sweden has been delving into the cashless economy at a very high rate and is mostly dominated by the private sector. This has been trailed by the consideration of introducing digital currency to fast-track the process by Sweden’s Central Bank, the Riksbank.
Riksbank, famed as the world’s oldest central bank revealed last year what the e-krona might look like and on Friday issued a call for the design of the digital currency to be made to observe the testing stage.
The recent trend in Sweden indicates that banks no longer handle cash, and it is no longer acceptable by shops and restaurants. A survey conducted by Riksbank shows that only 13% of Swedes pay for their most recent purchase in cash and 39% in 2010.
Notably, the rapid change in the economy has made life uneasy for the elderly, and the disabled who are making efforts to find their bearing in the economy in adopting mobile and digital payment in trend. Also, the trend indicates the private sector might be dominating the payment and money issuance in the country. This warranted the need for the state to take the necessary steps.
Riksbank’s main concern is that the absence of a state-backed means of payment in the digital era could lead to instability of the payment system in the country as well as make the Swedish monetary system untrustworthy.
The Plan For The Swedish Cryptocurrency Project, E-Krona
Riksbank said that plan is underway with the drawing of proposals for legislative changes that could give the e-krona legal standing.
The E-krona will be designed to be stored on a card or in a mobile app that will enable traceable transactions. It will serve as a compliment to physical cash and will ensure the public have access to central bank money.
Also, the timeline of the national cryptocurrency project will see the initiation next year for testing, and if certified will see implementation in the year 2021. This is the first time a country will be driven into national cryptocurrency project without the influence of hyperinflation such as Venezuela among others. This might be the beginning of a trend on the horizon.