While some countries, like China and South Korea, are opposing the idea of digital currency adoption, Sweden goes ahead with the initiative to issue Digital Cryptocurrency e-Krona. When will we see the launch?
18 January, AtoZForex – Cryptocurrency topic nowadays has become a somewhat controversial thing to talk about. Global regulators have divided into two camps – those, who support it and those, who are against the digital currency market.
Swedish Central Bank to Issue Digital Cryptocurrency e-Krona
In fact, some of the nations, like South Korea, are even considering the establishment of a ban on all cryptocurrency exchanges across the country. Yet, other countries see cryptocurrency market as less of a threat, and among them – Sweden. This country looks into ways of establishing its very own central bank issued digital cryptocurrency e-Krona.
Some online reports state that HSBC economist James Pomeroy has sent out a note to the clients of the bank regarding the latest Sweden cryptocurrency initiative. The note outlined that the Swedish central bank Riksbank might become the first to launch its own cryptocurrency, e – Krona.
The release of the digital currency would appear just at the right time for Sweden. This is due to the decrease in the cash usage rates across this Scandinavian country. In fact, Sweden population’s cash usage level is one of the lowest in the world.
Yet, the reports state that the release of e – Krona will not happen anytime soon. Mr. Pomeroy has stated that the officially sanctioned cryptocurrency would be introduced in the course of the next few years.
Riksbank Cryptocurrency Research
The Swedish central bank has always been pioneering new technological and economic developments. The speech by the governor of Riksbank, Stefan Ingves from last year states:
“It was in Stockholm that the first modern banknote was created more than 350 years ago, and that it is here, in Sweden, that cash is currently taking its last breaths. Perhaps the Riksbank will be writing history again.”
Mr. Pomeroy in his note stated that the Riksbank has showed increased interest in the idea of a central bank cryptocurrency. The bank has also published a myriad of research notes on this matter. The research suggests that the bank will need to provide clients with the access to payments due to the dropping rates of cash usage. Mr. Pomeroy’s note adds:
“The so-called e-Krona will have to be able to be used for small purchases, as a claim on the Riksbank and be accessible by companies, individuals and financial institutions at all times.”
In addition, Riksbank’s report on e-Krona stated that there are two ways in which the cryptocurrency could operate. These include a value-based system and a register-based system. Moreover, the central bank also might consider combining these two approaches.
Think we missed something? Let us know in the comments section below.