Blockchain and Cryptocurrency: People, Culture and Tech
Sveriges Riksbank researchers argue that “all CBDC payments will involve reconciliation with one or more remote ledgers” that track the transactions and ownership to prevent double-spends. This requirement—according to the bank—should squash the hopes for a cash-like anonymous digital currency.
Sweden is worried about the declining use of cash in the country, so it is looking into an alternative: a digital e-krona that will work on a mobile app and function similarly to cash.
The Bank of England’s statement said the group will explore “CBDC use cases; economic, functional and technical design choices, including cross-border interoperability; and the sharing of knowledge on emerging technologies.”
One of the first European countries to print paper money may also be first to phase it out. According to an HSBC analyst report, Sweden is the next nation to emerge as straight-up pro-cryptocurrency. Cash is dying there, with most Swedish residents perpetuating the well-established culture of paying for things via card or app. In 2015, bills and coins represented just 2% of Sweden’s economy. In 2016, the country’s central bank, Sveriges Riksbank, announced it was investigating issuing a formal Swedish cryptocurrency called the e-krona. A lot of pieces fit in the hypothetical jigsaw puzzle of Sweden-as-cryptocurrency-haven. The Swedish population already has a lot of experience with financial technology, thanks…
