Sweden starts trial period of its E-Krona cryptocurrency
The initiative is part of the restructuring process of the economic policy at the Nordic country
Sweden explores the benefit of cryptocurrencies and currently promotes a digital currency called E-Krona, which according to experts could facilitate conventional payments and banking activities throughout the country. Instead of using a credit card or spending fiat currency, daily transactions can go to the blockchain.
The initiative to have a currency driven by the blockchain platform makes more sense after the fall in cash that the region has suffered, being among the lowest in the world. During 2018, only 13% of the payments were made in cash, while in 2010 it was 36%.
Sweden is not the only country that has considered the possibility of creating a real and functional national cryptocurrency, since Russia and Saudi Arabia did the same. The Bahamas has also ventured into the world of crypto, with the pilot plan launched last December and the objective to keep it in the course of 2020.
According to a report issued by the Bank of Sweden, Riksbank, the E-Krona can be useful in two ways: under a value-based system or a record–based system.
For its part, HSBC economist James Pomeroy supports this thesis, ensuring that Sweden’s financial system is a good scenario for the management of a state-owned digital currency. “The Swedish economy would be a suitable scenario to implement a digital currency that more likely it is based on values; it would be more like cash today.”