Sweden has been exploring the potential benefits of issuing a digital central bank currency (CBDC) since 2017 and its central bank Riksbank recently reported that it would sign a deal with consultancy firm Accenture to create a pilot platform for the digital currency, known as the e-krona, Reuters reports Dec. 13.
Riksbank 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.”
Accenture would build up the consumer-facing features of the e-krona – such as how a customer can pay on different mobile channels and run them in a “simulated shop” test environments. The development includes a technical platform with a user interface that enables e-krona payments from cards, mobile phones and wearables. However, Riksbank hasn’t committed to issuing the e-krona at this time. Its initial contract lasts for one year, but Riksbank said it is open to as many as seven years of tests.
The demand for notes and coins in Sweden is so low that cash is literally disappearing. Retailers are increasingly refusing to accept banknotes and banks are increasingly not offering services to process banknotes. Riksbank estimates that between 2012 and 2020, cash in circulation will have declined by 20–50 per cent. Swedes mainly use debit cards and popular mobile payment app, Swish. So many people are ‘swishing’ now that the app is credited for the reduction of cash circulating in Sweden. Swish and mobile payment methods such as iZettle also makes it easier for small business owners to operate cash-free.
The possibility of countries adopting a CBDC is not something new, with countries such as China, Ukraine and the United Kingdom studying the risks and benefits of issuing their own digital currencies.
