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Sweden’s Central Bank Releases 98-Page Report On Central Bank Digital Currencies

Sveriges Riksbank, Sweden’s central bank just released a 98-page report on central bank digital currencies, referencing the country’s own such asset — the e-krona.

In an initial note to readers, Riksbank’s June 18, 2020 report said:

“The second issue of Sveriges Riksbank Economic Review in 2020 has a special theme, namely central bank digital currencies (CBDC) and the e-krona.”

The Sveriges Riksbank Economic Review does a deep dive into central bank digital currency, including chapters issuance rationale, and on the pros, cons and trade-offs of different e-krona design features. https://t.co/uUSt49io2r — John Kiff (@Kiffmeister) June 19, 2020

In December 2019, Sweden unveiled intentions for a pilot program around its e-krona, in collaboration with Fortune Global 500 company Accenture.

The new report from Sweden’s central bank refers to its 2018 Economic Review detailing the e-krona and its progress:

“Riksbank has since continued to delve into various aspects of CBDC, both from an analytical and a practical perspective..Some of this work is summarized in this issue.”

Riksbank’s 2020 Economic Review includes reasoning behind a Swedish CBDC, listing monetary issues in the country, as well as other drivers.

The report also covered points such as including inquiry on such a currency’s necessity, competition and other aspects.

The review only includes one direct reference of blockchain as seen in a footnote on page 89:

“An open DLT network is associated to several disadvantages; every transaction must be verified by every participant (cf. blockchain) in a time and resource consuming manner. The responsibility for the Riksbank regarding AML, KYC & CTF could be indefinite. Fraud and cyber-attacks are hard to prevent in an open network.”

However, the report mentions distributed ledger technology or DLT several times.

Source: Cointelegraph | Image: Pixabay

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