You might have read the headlines.
«Sweden could be the first economy to introduce its own cryptocurrency» (Business Insider) or «Sweden’s Very Own Bitcoin» (Bloomberg). But why would a country issue a cryptocurrency, their «own Bitcoin», when the major selling argument of such a currency is that it is decentralized and not controlled by an authority? The confusion is understandable, especially since the Riksbank (the Swedish central bank) made a number of references to cryptocurrency in their first report, a little more than a year ago. Media is to blame for much of this confusion though because of their usual tendency to create clickbait headlines using the most recent buzzwords.
The truth is that what the Riksbank is trying to achieve has little in common with Bitcoin.
The use of banknotes and coins is declining in society.
At the same time, technological advances with regard to electronic money and payment methods are proceeding rapidly. The Riksbank is therefore investigating whether Swedish kronor need to be made available in electronic form, the so-called e-krona. No decisions have yet been taken on issuing an e-krona.
The Riksbank has the task to promote a safe and efficient payment system, a task that may be more difficult if cash is no longer used as a means of payment by the majority of households and companies in the future. The Riksbank therefore needs to consider which role it should adopt in an evermore digital world.
An e-krona, if it becomes a reality, would be issued by Sveriges Riksbank and have the same value as banknotes and coins. Crypto-assets, on the other hand, should not be seen as currencies, but rather as a form of financial asset.
The Riksbank monitors and analyses the development of crypto-assets as part of our task of promoting a safe and efficient payment system.
There is still no established definition of crypto-assets, which are often also called crypto-currencies or virtual currencies. The primary reasons why crypto-assets are not money is that these assets lack an official issuer and do not function like a normal means of payment.
The reports from the Riksbank’s e-krona project provide a status update on the Riksbank’s work on investigating the possibility of issuing a digital complement to cash, so-called e-krona.
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The Riksbank is Sweden’s central bank. We ensure that money retains its value and that payments can be made safely and efficiently.
We also issue banknotes and coins.
Cash use continues to decline in Sweden.
In future, cash may be so marginalised that it becomes difficult to use as a means of payment. For 350 years, the Riksbank has provided the general public with money but going forwards, the technical development and digitalisation of payments will bring the issue of the state’s role to a head. If the marginalisation of cash continues a digital krona, an e‐krona, could ensure that the general public still has access to a stateguaranteed means of payment.
Sweden’s reserve bank has warned that the individuals and firms purporting to sell the electronic version of the national currency, the e-krona, are fraudsters as the digital currency project ‘has not been concluded’. According to Riksbank, ‘no decision has been…
Sweden’s reserve bank has warned that the individuals and firms purporting to sell the electronic version of the national currency, the e-krona, are fraudsters as the digital currency project ‘has not been concluded’.
According to Riksbank, ‘no decision has been taken on issuing e-kronas’ and therefore claims to the contrary were false. Riksbank pointed out that the scam was being perpetrated online as well as via phone calls:
… on certain websites and in social media, claims have been made that it is possible to purchase e-kronas.
E-krona coin is OTA-Based ‘E-Krona’ Cryptocurrency To Be Launched By Sweden.
Ekrona is a Nordic p2p digital cryptocurrency that uses Scrypt PoW and offers fast international transactions.
Sweden is building it’s own cryptocurrency E-Krona and it seems that IOTA and Stellar(IBM) are in shortlist but not Nano. self.nanocurrency
Sweden’s E-krona coin has shortlisted Stellar and IOTA to build a national cryptocurrency but as we all know Nano’s technology is very well suited for this type of project and would have provided incredible credibility to Nano project. Nano team should look into this type of project and show what is the potential of Nano.
At the same time, of course, it is an opportunity: based on blockchain distributed ledger technology, it is now possible for the central banks to provide individuals with central bank money as well.
Bitcoin: some call the world’s best-known cryptocurrency a fad, others call it the future. Whichever it turns out to be, there’s no denying it presents a fascinating alternative to traditional currency.
Sweden has enthusiastically embraced bitcoin and is marching at the forefront of the cryptocurrency revolution.
“Sweden is among the leaders in the global bitcoin market,” confirms Claire Ingram Bogusz, a researcher at Stockholm School of Economics specialising in bitcoin and other cryptocurrencies.
Sweden is planning to launch e-krona.
However, there are several challenges ahead.
According to reports, the country is looking to create safer, faster and more secure methods of carrying out financial deals. The governor of the Swedish Central Bank, Stefan Nils Magnus Ingves, spoke more on the proposed e-krona last week.
He believes creating it is feasible.
He, however, added that there are several conditions for launching the digital currency.
Ingves pointed out that most of the challenges will be in the area of operation.
The digital currency is expected to be available 24/7.
This will be quite a burden as Sweden’s current fiat laws have not been revised for this purpose.