Swedish Central Bank To Introduce Digital Krona
The Bank of Sweden has announced a plan to develop and test a mechanism for paying for goods using digital currency.
The press release of the Swedish Central Bank notes that it has already selected a company to deal with the technological aspect of the project.
The project will include a digital platform that allows payments by electronic krona “using a mobile phone, credit card and watch”.
As part of the testing, the platform will also allow simulating payments within payment systems, retail stores, « as well as other parts of the Swedish payment system. »
This test phase of electronic krona payments is expected to last until December 31, 2020. At the same time, the central bank allowed further extension of the test period for up to 7 years.
The main goal set by the Bank of Sweden during the implementation of this digital currency project is to « expand the understanding of the technological capabilities of the electronic money. »
The Central Bank of Sweden, thus, becomes one of the first world central banks to begin active testing of the use of digital currency as the main means of payment instead of traditional paper money.
Earlier, the central bank also published a number of key points in favor of developing the electronic krona project, noting, in particular, a decrease in the use of paper banknotes in the country, as well as the development of technologies in the field of electronic money and payment systems.