The governor of Sweden’s central bank has issued a five-year time frame within which he expects the country to have a central bank digital currency (CBDC). This is the first time the regulator has given a tentative timeline as it seeks to introduce a CBDC into one of the world’s most advanced digital payment systems.
Stefan Ingves revealed the timeline to local outlets recently, stating that five years is a reasonable target. As Bloomberg reports, Ingves believes that this speed for the e-krona studies and experimentation is a success for Sweden. “We’ll only know in hindsight whether it was quick or slow,” the governor however acknowledged.
One of the key concerns raised in regards to CBDCs is the amount of control they erode from the central bank. Some have expressed fears that monetary policy tools such as interest rates and quantitative easing would become almost useless when the public is using a CBDC. One of those who have raised such concerns is Anna Breman, the Riksbank deputy governor. In February, she stated her concern that a CBDC in Sweden would make it easier to introduce “helicopter money and deeply negative interest rates.”
However, Ingves isn’t concerned about such possible risks, at least not at present. “That would be a question for the distant future,” he told reporters.