The Riksbank, Sweden’s central bank, has been conducting research on Central Bank Digital Currencies (CBDCs) since 2020. The bank has prioritized collaboration with existing private payment services to explore the possibilities of CBDCs. Governance has been identified as a key question for collaboration and the bank has divided options into three levels. The lowest level is a set of guidelines that may give participants too much freedom, making it difficult for the public to understand what an e-krona is. It may also fail to serve the entire population.
Sweden has been at the forefront of cashless payments for years, with almost all transactions made digitally. However, the Riksbank is concerned about the consequences of a cashless society, particularly for those who are unable or unwilling to use digital payment methods. The bank sees CBDCs as a way to provide a digital alternative to cash that is accessible to everyone.
The Riksbank has been working with Accenture to develop a pilot platform for an e-krona. The platform will enable the Riksbank to test different solutions and explore the potential of a CBDC. The pilot will run until February 2022 and will involve participants from the banking sector, payment service providers, and retail companies. The Riksbank has emphasized that the pilot is not a decision to issue an e-krona, but rather a way to gain knowledge and experience.
The Riksbank has also been collaborating with the central banks of the European Union to explore the potential of a digital euro. The two central banks have signed a memorandum of understanding to share knowledge and experience on CBDCs. The Riksbank has emphasized that the e-krona and the digital euro are not competitors, but rather complementary initiatives.
The Riksbank has identified several potential benefits of a CBDC. One of the main advantages is the ability to provide a digital alternative to cash that is accessible to everyone. CBDCs could also reduce the cost and complexity of cross-border payments, as well as provide a tool for monetary policy. However, the Riksbank has also identified several risks and challenges, including the potential for financial instability, the risk of cyber attacks, and the need to ensure privacy and security.
The Riksbank has emphasized that any decision to issue an e-krona will require careful consideration and consultation with stakeholders. The bank has also emphasized that the e-krona will not replace cash, but rather provide a digital alternative that is accessible to everyone. The Riksbank’s pilot platform for an e-krona is an important step in exploring the potential of CBDCs and gaining knowledge and experience.
In conclusion, the Riksbank has been conducting research on CBDCs since 2020 and has prioritized collaboration with existing private payment services. The bank has identified governance as a key question for collaboration and has divided options into three levels. The Riksbank has been working with Accenture to develop a pilot platform for an e-krona, which will run until February 2022. The bank has also been collaborating with the central banks of the European Union to explore the potential of a digital euro. The Riksbank has identified several potential benefits of a CBDC, but has also identified risks and challenges. Any decision to issue an e-krona will require careful consideration and consultation with stakeholders. The Riksbank’s pilot platform for an e-krona is an important step in exploring the potential of CBDCs and gaining knowledge and experience.
