Sweden has started piloting an e-krona, bringing it closer to the formal launch of a central bank digital currency (CBDC). According to the Reuters report, the testing period will last for 1 year, until Feb 2021.
The Sweden Central bank claims there are potential challenges with the marginalization of cash and that is why it has initiated this CBDC pilot project. It said the pilot will help to develop a proposal for a technical solution for Swedish kronor in electronic form. Meanwhile, the bank said no decisions on issuing an e-krona have been taken yet.
Should the blockchain-based e-krona officially get launched, it would drive conventional payments and banking activities throughout the country. Day-to-day transactions can take place on the blockchain, either than swiping a credit card spending fiat currency.
The issue of CBDC have been in the news in recent times and Sweden has been the second country, next to Bahamas, to unveil a ‘true’ working national crypto. Bahamas launched its CBDC testing in December 2019 and plans a full rollout somewhere in the second half of 2020.
Though China is also planning on issuing its own CBDC, developments on their side so far aren’t as cohesive as Sweden and the Bahamas.
Featured Image Courtesy of Shutterstock