According to a recent report released by the Swedish central bank, they are planning to sign a new partnership with Accenture to work on a new e-krona digital currency pilot. Sweden has a massive advantage to launch a digital asset based on its currency due to the fact the country is one of the most advanced in terms of leaving behind cash payments.
Sweden’s Central Bank Could Release An e-Krona Pilot Project
Governments around the world are analysing the possibility to release different digital currencies that would be operating side by side with their local fiat currencies. Sweden is one of these countries that would like to test and analyse the effects of a Central Bank Digital Currency (CBDC).
The statement released by the Riksbank, the main goal is to broaden the bank’s knowledge of the possibilities that an e-krona would provide.
About it, the Swedish Central Bank explained:
“The primary objective of the e-krona pilot project is to broaden the bank’s understanding of the technological possibilities for the e-krona.”
As mentioned before, cash usage has been declining in the country. This has pushed the central bank to analyze whether it would make sense or not to issue a digital e-krona for its population.
This is not the first country in the world that is analyzing this possibility to issue a CBDC. For example, China, Ukraine and even the United Kingdom are studying the risks and benefits of issuing their own digital currencies.
Switzerland Considers Risks Are Greater Than Benefits
According to the Swiss government, the risks of issuing an electronic Swiss franc are larger than the benefits for the economy. The Swiss National Bank has been analyzing this possibility to launch a digital Swiss franc to the general population. However, the results of their study showed that it has a few benefits compared to the side risks related to it.
The Swiss cabinet commented about a digital franc:
“Universally accessible central bank digital currency would bring no additional benefits for Switzerland at present. Instead, it would give rise to new risks, especially with regard to financial stability.”
Although this could be not a good idea for the general public, financial companies may be ready to start handling a digital franc.
A central bank digital currency could be used in order to improve tax collection, increase the efficiency of monetary policies and have wider control over the population and its expenditures.