Sweden’s central bank will bring in banks in the coming year to test how its proposed digital currency – the e-krona – could handle commercial and retail payments in the real world, it said on Tuesday.
Central banks around the world are looking at launching central bank digital currencies (CBDCs)in response to a decline in the use of the cash they print and as a way of speeding up domestic and international payments.
Up to now, the e-krona pilot has only been simulated within the Riksbank, but will be broadened to include participants like commercial banks in the next phase of the project, the central bank said.
“The technology provides new possibilities. ..but is untried when it comes to processing retail payments in the magnitude and with the safety level required,” the Riksbank said in a statement accompanying a report on a pilot study’s findings so far.