Report Says Sweden is Considering a Digital Krona, e-Krona

According to Blomberg, Friday, Sweden is considering a digital currency named e-krona. By that move, they are becoming one of the first countries to consider a national digital currency. However, they are seemed to be coming behind China, Lithuania, Venezuela, and others who have finalized pilots and have implemented a few use cases.

During the announcement, Per Bolund, the financial market minister, said the reviewed launch is expected to complete by November 2022. Anna Kinberg Batra, a former chairwoman of the Riksbank’s finance committee, is said to lead the inquiry.

Meanwhile, it is noteworthy that the Sweden central bank has already piloted an electronic krona based on the blockchain, the technology that underpins cryptocurrencies like Bitcoin, with Accenture Plc.

According to Bolund, who maintained that e-krona is crucial and should be available to everybody, he said;

“Depending on how a digital currency is designed and which technologies are used, it can have large consequences for the entire financial system,”

According to Riksbank, where Anna chairs, Sweden’s cash usage dropped in October, Sweden’s cash usage dropped to its lowest level ever, as the pandemic accelerates the shift away from banknotes and coins. According to the bank’s research, less than 10% of all payments are made with cash in Sweden.

Also, the Bank for International Settlements, back in 2018, estimated that Sweden is the world’s most cashless society, measured as usage as a percentage of gross domestic product.