The future marginalization of liquidity and the consequent problems led the Swedish National Bank (Riksbank) to conceive and subsequently launch a project for the development of a cryptocurrency, known as “e-krona“, To introduce the electronic Swedish crown.
E-krona would the state cryptocurrency issued by the central bank: a secure and alternative payment tool for the digital market, the only one that momentarily provides digital money and different payment methods.
This currency, when available to all Swedish citizens, will reduce the risk of weakening the national currency caused by competing private currencies. E-krona will keep the integrity of the transaction data intact and protected.
The Riksbank has expressed itself like this:
“Digital money is a credit for a private player, unlike money that is a credit for the state. An e-krona would offer the public continuous access to the Central Bank's monetary resources, as traditional money has done, but in digital form ”.
The implementation and development of the e-krona project, which needed testing, led the Swedish National Bank, according to the government, to collaborate with Accenture for the installation of a technical platform suitable for multiple tests, in order to carry out The use of the digital crown is safe and easy to use.
The new cryptocurrency must be inserted into a digital wallet and, through an application, it will be possible to make payments, deposits and money transfers. The application must be able to be installed on devices such as digital watches, smartphones and cards to help the user to make transactions immediately.
The association Accenture will expire in early 2021, but may extend for another 7 years.
As can be seen in the two Riksbank reports, the tests are carried out in an environment called “e-krona network” that consists of 2 phases. In the first phase, the Riksbank will distribute e-krona to the participants in the network, that is, the bank's branches; In the second phase, the branches will distribute the money to the end users who also participate in the network.
How does the Swedish cryptocurrency work?
Users must, as a priority, deposit their reservations within branches to obtain e-krona and subsequently be able to make the respective payments. This is done through the system RIX, the current central payment method in the Riksbank where transfers are handled between the accounts of the different banks.
The consumer and the merchant can respectively control and manage their digital wallet by installing an application on a mobile device and at the cash register. After activation of the digital wallet, users can use e-krona to make and receive payments and transactions from their bank account to the wallet.
The entry of new users to the network, as private, can only be managed and enabled by the Riksbank and only the supply or redemption of e-krona will be done through RIX.
Participants who have had access to the e-krona network will see their transactions recorded thanks to the DLT string of the company R3, the platform on which the network is based.
Payments will be mediated by public sector agents; The issuance, redemption and settlement of e-krona will be the responsibility of the National Bank. The network, mainly intended for small-scale payments between consumers, companies and authorities, could guarantee its anonymity.
For this project to be possible, the Riksbank must constantly conduct appropriate evaluations taking into account the complex problems that affect society as a whole.