The Central Bank of Sweden will handle the next stage of its e-krona project with assistance from two organizations in the financial sector. The decision indicates a switch from the first in-house experimentation using simulated participants to working with real-life partners.
Sweden’s Central Bank cooperates with Handelsbanken and Tietoevry To Validate E-Krona
The basic task during the next phase of the pilot will be to test “the technical option for the e-Krona” with the indulgence of true market participants. To achieve this, Sveriges Riksbank has brought in Handelsbanken, one of Sweden’s leading institutions, and Tietoevry, a digital service & software company.
In a statement issued on Friday, the regulator said:
“Bringing in external experts to participate in the test environment will open up the chance for Riksbank to assess the connectivity amid the participants’ current system and the technology for the e-Krona pilot.”
One of the features that will be put to test is the incorporation of payment flows built during the 1st year of the pilot with the latent systems of new testers, the Central bank stated.
The participants will mimic how financial institutions may utilize the e-Krona facility, Tietoevry elaborated in another press release, detailing:
“Tietoevry will build and experiment the process of interchangeability amid fiat currencies and e-Kronor and scrutinize how it can be done effectively and safely.”
The Finland-based company also identified its “distinct position in the Nordic financial environment” due to a wide client base comprising payment systems and banks. More than 70 percent of every Nordic bank transfer is paid through its payment gateways and the fintech allows the major payment services in Finland, Norway, and Sweden.
Sverige Riksbank to incorporate E-Krona with current Banking Infrastructure
“Our duty in the Swedish payment system is properly established and Tietoevry is a normal partner when looking at how to incorporate a cryptocurrency with the current banking infrastructure,” said the Head of financial services solution and Software development, Christian Segersven. “We are aiming to aid this journey towards a robust cryptocurrency that will make way for new and safe options,” he added.
The other partner to partake in the second phase of the e-krona plot, Svenska Handelsbanken, is one of the largest banks in Sweden having over 400 buildings across the country. Launched in 1871, Svenska Handelsbanken is also one of the earliest companies listed on the Swedish stock market.
Many years down the line, Sweden’s Central bank has continued enlarging its activities in other countries in the district including the Netherlands and the United Kingdom where the bank has more than 200 branches.
Sweden’s decision to release a central bank cryptocurrency was thought of some years back. Towards the last months of 2020, Stockholm’s government started researching the possibility of digitalizing the country’s fiat currency, the Swedish Krona. Deniably, Stockholm has already developed the World’s most cashless economy. The assessment ought to be done within 2 years of its establishment.
A month ago, Sweden’s Central bank announced the finalization of the 1st stage and issued a report that listed the consistent decline of cash exchange in the country. Sverige Riksbank corroborated the need to continue with the project and boost the participation of financial actors needed to partake currently in the experimentation and become part of the e-Krona network for years to come.