Sweden, one among the most cashless society is moving closer to launching its own sovereign national digital currency. The Swedish government is starting feasibility trials in the form of a review which was launched on Friday as reported Bloomberg. The trials will be lead by Anna Kinberg Batra, a former chairwoman of the Riksbank’s finance committee which is expected to commence by November 2022.
A recent survey by The Riksbank conducted back in October revealed that the ongoing pandemic has reduced the use of cash in Sweden further, where less than 10% of all the payment settlements are done in cash.
Sweden is already conducting pilot programs for its digital currency in association with Accenture PLC to introduce e-krona based on Proof-of-work blockchain. The feasibility trials would give a clear picture to the government on whether the country is ready to use the electronic krona or not.
Per Bolund, financial markets minister believe before rolling out a digital currency, it is important to completely ensure the security and feasibility of the technology as it would have a long-lasting impact on the financial systems. He explained,
“it’s crucial that the digitalized payments market functions safely, and that it’s available to everybody. Depending on how a digital currency is designed and which technologies are used, it can have large consequences for the entire financial system,”
The Sovereign National Digital Currency Race is Heating Up
The talk around developing a sovereign national digital currency is heating up as many countries are looking to launch a central bank-issued digital currency of their own. China is currently at the forefront with its digital yuan almost ready to launch, while the likes of Sweden, South Korea, the UK, and Germany are currently testing different aspects of using a digital currency.
Recently, the German Finance minister called on ECB to finalize the digital Euro plans faster so that they don’t lag in the rapidly growing fintech universe. The US already sees China’s digital Yuan as a threat to the sovereignty of the US Dollar and wants to work towards keeping the monopoly of the international trade market in their hands.
In the recently concluded G7 meetings, most of the members discussed the growing influence of digital currencies and how regulations would play a key role in ensuring financial sovereignty.