Sweden targets creation of digital central bank currency by 2026

Five years from now, Sweden may officially join the list of countries that have a Central Bank Digital Currency or CBDC.

In a report by Bloomberg, Riksbank Governor Stefan Ingves said that the country is entering a post-cash era and that they have established five years as a timeline for the adoption of a CBDC, known as e-krona.

Sweden’s top central banker said that the five-year estimate is a reasonable one, considering the speed of the ongoing e-krona investigation, which he said is already considered a success.

Sweden at the Forefront

Sweden continues to be at the forefront in Europe when it comes to digital payments adoption. This proves to be very significant because the country is considering becoming a cashless society.

In line with this, Riksbank said that its e-krona pilot project could be completed early next year and has given itself until the end of 2026 to carry on with the initiative.

Last year, the bank reported a drop in cash usage in Sweden, plummeting to its lowest ever, with the current problems brought by the COVID-19 pandemic hastening the shift away from traditional currencies.

Countries with Digital Ambitions

Countries that are working hard to establish their own digital currency are no longer news now, with the trend continuously growing.

In the Bahamas, there is already an existing cryptocurrency while China has started to pilot what is known as the Digital Yuan in several of its major cities. Last February, European Central Bank President Christine Lagarde said that in about four years, a Digital Euro might be a reality.

Sweden’s Central Bank, on the other hand, has been pushing back its timeline in joining the bandwagon, originally saying it would move ahead with e-krona by 2018. However, it has given itself until 2026 to finish related studies.

 

Image courtesy of Cointelegraph News/YouTube

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