Sweden intends to issue a central bank digital currency

According to the Arab portal for technical news, the bank said: If the Swedish electronic krona eventually becomes circulated, it will be used to simulate daily banking activities, such as: payments, deposits, and withdrawals that will be made via a digital wallet, such as: mobile phone application. The bank added in a statement: The aim of the project is to demonstrate how electronic krona is used by the general public.

Last January, central banks in Britain, the Eurozone, Japan, Sweden and Switzerland joined forces to assess the state of issuing digital currencies belonging to central banks. Digital currencies from central banks are traditional money, but in digital form, issued and governed by the country's central bank. Conversely, cryptocurrencies, such as: bitcoin, are produced by solving complex math puzzles, and are governed by various online communities rather than by a centralized body.

The sharp decline in the use of cash and competition by alternative currencies, such as: Libra from Facebook, prompted central banks all over the world to consider issuing their own electronic currencies.

Bank (Rex Bank) said on its website: It will be easy to make payments by e-krona as if sending a text message. Sweden is the least cash-dependent country in the world, which makes it a simple test of how central banks respond to people using less money that they print.

The Swedish bank said: It has not taken any final decision regarding the issuance of electronic krona, and that the current test developed by consulting firm Accenture will simulate the use of electronic krona in an isolated test environment. According to the bank, the experimental stage of the electronic currency that will use the technology (blockchain) will continue until February 2021.