Although the concept of cryptographic money controlled by a central bank remains highly disputed, efforts are being made to make it a reality. Sweden could be one of the first countries to embark on such a project. The cryptomonnaie will be called E-Krona, and its release is expected from next year.
- E-Krona: the new cash
The concept of cryptographic money issued by a central bank is of great interest to the Swedish government. The country uses much less cash than before. This suggests that retailers and consumers are looking for new payment opportunities.
The bank is currently examining whether or not it is possible to create a cryptographic currency. It would not replace the national currency but would be complementary. After all, there is no reason to abolish cash in Sweden at the moment, even if fewer people use it.
With the rapid decline in the use of liquidity in Sweden, it is more important than ever to offer digital solutions. E-Krona would provide users with state-guaranteed digital cash. Payment service providers could also use the new currency without major repercussions. For the time being, the concept is only being studied.
- E-Krona: the Swedish cryptographic project still under study
The E-Krona will be issued on a kind of centralized ledger controlled by the Swedish central bank. It is unclear whether it will be a blockchain, a distributed ledger, or simply an old regular database. Nor is there any indication as to the number of these numerical crowns which will be put into circulation.This is not without consequence, for if the money supply suddenly increases, this could disrupt the Swedish economy. It seems that there will also be an application dedicated to this currency, although no details have been revealed yet.
For now, the main objective of the bank is to study the feasibility of such a project. Even if it makes a lot of sense on paper, you have to do a lot of research to make sure that all the consequences can be anticipated. The focus has been on finding the best technologies for this cryptographic enterprise. To this end, the group will have an open dialogue with the authorities and private service providers.
However, the Swedish central bank is not the only institution to show interest in central cryptographic currencies. In recent months, we have seen other financial entities investing in similar research. For the time being, none of these efforts had any significant impact, which should not surprise anyone. The digital currencies of the central banks will always remain an interesting current of thought.