Swedish CBDC Nears Launch

The Swedish central, “Riksbank”, has announced that the nation’s proposed central bank digital currency (CBDC) successfully progressed beyond its second phase of trials.

The “e-krona” pilot project was recently tested to see how a digital currency could function in offline scenarios and how banks and other payment services could integrate with the developed e-krona network. Successful tests with the Handelsbanken and Tietoevry have shown that it is infact possible to integrate a new CBDC with the nation’s internal banking systems. Users would be able to exchange their traditional FIAT money (krona in this case) in their bank account for the new e-krona, and vice versa.

The second phase of testing has also brought into question the legal framework behind the creation of a new currency in Sweden that is strictly digital. The trials have determined that the asset could be classified as an electronic form of cash, but would require the proper regulatory and legal framework to be established by the Swedish government before widespread usage could occur.

The pilot program is now entering phase 3 which will continue to test the potentiality of offline payments and future requirements that an e-krona could have. Sweden is among many nations around the world that are racing towards the research and development a central bank-issued digital currency.