Sweden Looking Towards the Direction of Creating a National Cryptocurrency
At a time when governments around the world are busy formulating anti-cryptocurrency policies to cripple the growth of digital money, Sweden, a country whose citizens prefer transacting digitally, is making real plans to create the e-Krona, to serve its citizens better.
E-krona – Sweden’s Blockchain-based Crypto
Per Business Insider, the central bank of Sweden, Riksbank is at the frontline of international cooperation on the creation of government-approved national cryptocurrencies, and the Scandinavian nation could be the first to launch its national cryptocurrency.
HSBC this week sent a note to its customers through its economist, James Pomeroy. The letter titled “Sweden’s big year: Can the Economy Overcome some Challenges?” The content of the note bordered on the State of the Swedish economy and the possible introduction of a national cryptocurrency it calls “e-Krona.”
Sweden is one of the world’s most cashless country and retail stores and businesses in the country have come to prefer digital payment over fiat transactions. There are even anecdotal stories of beggars and buskers who have moved on to the cashless side of life – accepting payments via their PoS terminals.
In essence, it’s a very sensible thing for the Riksbank to be at the forefront of discussions on the creation of central banks issued cryptocurrencies. According to Pomeroy, the bank has:
“Issued a number of research articles on the topic, with the suggestion being that as cash usage continues to dwindle, the central bank may need to find another way to provide their populations with access to payments that are not via an intermediary such as a retail bank. The so-called e-Krona will have to be able to be used for small purchases, as a claim on the Riksbank and be accessible by companies, individuals and financial institutions at all times.”
Throughout history, the Riksbank has been at the front line of advances in money, pioneering new ways of payment. In December 2018, the governor of Riksbank, Stefan Ingves said:
“It was in Stockholm that the first modern banknote was created more than 350 years ago and that it is here, in Sweden, that cash is currently taking its last breaths. Perhaps the Riksbank will be writing history again.”
The Riksbank has said the e-Krona would work in two possible ways: a value-based system and a register-based system. The Apex bank has also said it could base the e-Krona on the two systems. In line with this, Pomeroy stated that:
“A Central Bank Cryptocurrency (CBCC) would use Blockchain technology, whereas a non-Blockchain solution would make the e-Krona a ‘deposited currency account.'”
It is pertinent to note that Sweden is not the only country making concrete plans of setting up a Blockchain based national cryptocurrency. For instance, in December 2017, BTCManager reported on the news of Israel’s policies concerning the establishment of federal cryptographic money. Also Russia, and Dubai are making active preparations towards creating their national Blockchain-based cryptocurrencies.
It appears it’s only a matter of time before the world becomes a global cryptocurrency village.