Testing of Sweden’s digital currency e-krona begins

by Blocks99

7 months ago

The Swedish Central Bank, Riksbank, has started testing Sweden’s digital currency. The e-krona was built by Accenture using the Corda enterprise blockchain.

Accenture won the contract to develop e-krona in December of last year. The trial of Sweden’s digital currency is set to last until February 2021.

According to a report on the Riksbank’s Website, the e-krona was developed in response to the declining use of cash and coins Sweden. The Swedish Central Bank also states that it will distribute the e-krona to the general public. determining its equivalent value in relation to cash. This is in contrast to cryptocurrencies whose value is determined by the network.

Heightened interest in central bank digital currencies

Many countries are currently exploring central bank digital currencies (CBDCs). In some cases, authorities hope to curb runaway inflation – a severe challenge to economies and societies like Venezuela or Zimbabwe – with the technology. Some central banks like the Bank of Bangladesh have embraced the idea of a CBDC. Others, such as the Bank of Japan, have warned that uncertainties over the impact of a CBDC on commercial banking must be addressed. The Bank of Japan has also voiced concern the idea that could encourage harmful interest rate policies.