Sweden to study transition to digital currency within two years

The Swedish government will study the feasibility of moving the country to a digital currency, reports Bloomberg.

Per Bolund, the Minister for Financial Markets, said that the study is expected to be completed by the end of November 2022. It will be led by former chair of the Riksbank’s Finance Committee Anna Kinberg Batra.

The plans to launch a digital currency first emerged in 2016. In February 2020, the central bank, in partnership with consulting firm Accenture, began testing the e-krona. The parties signed a partnership agreement last year.

In October, Riksbank Governor Stefan Ingves said that the decision to issue the digital krona should be taken at the political level.

From the government’s perspective, Bolund says that “it is crucial that the digital payments market functions safely and is accessible to all”.

“Depending on how the digital currency is designed and what technologies are used, it could have significant consequences for the entire financial system,” the minister stressed.

According to the Riksbank, the use of cash in Sweden has fallen to its lowest level on record amid the pandemic, accelerating the shift away from banknotes and coins. Fewer than 10% of payments in the country are made in cash.

Earlier, Deutsche Bank analysts say that central bank digital currencies (CBDCs) will displace cash in the long run. The Bank for International Settlements believes that banknotes and coins will remain in demand.

Subscribe to ForkLog news on Telegram: ForkLog Feed — the full news feed, ForkLog — the most important news and polls.