Tuesday, May 11, 2021

Sweden’s central bank releases the first study about its CBDC project.

The Takeaway:

The Swedish central bank keeps making steps towards modeling its e-krona pilot project by issuing a detailed report of phase one's results for the path ahead.

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According to the report titled “E-krona pilot phase 1,” the central bank highlighted that cash usage in Sweden is “declining.” The central bank sees potential problems arising from the decline in cash and is therefore running a project to investigate the possibility of producing a digital complement to cash.” Central banks around the world are actively working on their CBDCs. 

 

The central bank wants “market actors” to be involved in the plan’s development.

According to the Sweden’s central bank’s report, Riksbank wants “market actors” to be involved in the plan’s development, “who could potentially become participants in an e-krona network, to test this technical solution. Such comment could be suggesting that private firms and even commercial banks can participate in the CBDC pilot. The central bank’s report also mentioned the development of an “off-line function.” The report read, “during phase one, we have only made a theoretical analysis of the possibilities of the solution. During phase two, an off-line solution with local storage of keys and tokens will be implemented and used in further tests that can provide knowledge of the solution’s possibilities and limitations.”

 

Central banks continue to explore CBDCs. 

As reported earlier, the Bank for International Settlements had published a report saying almost two-third of the central banks are preparing to launch a CBDC. Earlier, the Bank of Russia announced that they would begin the trial of digital ruble beginning next year. The People’s Bank of China has been working on its CBDC for some time now and is very close to issuing it to the general public. The central bank has conducted several successful trials of digital yuan. Bank of Japan has also announced that it would begin testing its CBDC next year. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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