Sweden to extend digital crown pilot until 2022

Sweden to extend digital crown pilot until 2022

Sweden to extend CBDC’s e-krona pilot project until 2022.

The Swedish central bank Riksbank recently announced that it has extended the ongoing pilot project to create a digital version of the Swedish krona until 2022.

In collaboration with consulting firm Accenture, the Riksbank has launched the pilot programme „e-krona“ to achieve „marginalisation of cash“:

„The Riksbank sees potential problems with the marginalisation of cash and has therefore initiated a pilot project to develop a proposal for a technical solution for a digital central bank currency, an e-krona. This can act as a complement to cash.“

The latest announcement says no decision has yet been made on how or if the e-krona will be issued. But a short Bitcoin Champion whitepaper from 2020 explained that R3’s Corda blockchain would be used. This is a private distributed ledger designed for businesses and enterprises. Unlike public blockchains such as Bitcoin and Ethereum, projects built on Corda will be accessible by invitation only.

Central bank digital currencies (CBDCs) are digital currencies issued and overseen exclusively by a country’s central bank. Unlike coins based on open-source, decentralised, public blockchains, CBDCs do not present themselves as alternatives to the current fiat system. Rather, they are intended as a possible hedge against the spread of digital currencies, acting as a mere digital version of existing national money.

The pilot programme will continue over the coming year and is scheduled to end in February 2022

The latest announcement said that testing the offline function and engaging external participants would be prioritised in the coming months:

„The main objective of the pilot project is for the Riksbank to expand its knowledge of a digital krona issued by the central bank. The project will now be extended until the end of February 2022. The goal for the coming year is to further develop the technical solution. The focus will be on performance, scalability, testing offline functions and involving external participants in the test environment.“

Sweden to extend digital crown pilot until 2022