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On December 13th, Sweden’s central bank announced that it would be collaborating with Accenture, a strategy and consultancy firm for digital and technological operations, to begin the development process for a digital currency, the e-krona.
The project will initially begin with creating a pilot platform so the development of cryptocurrency, called e-krona, can take place in a safe test environment.
The world’s oldest central bank, Riksbank, discussed the details about the recent project, stating to the public that the main goal of the e-krona plan is to expand the central bank’s understanding of the potential in the technology department for the national cryptocurrency.
The Swedish central bank initially began the project in the year 2017 by observing the possibility of creating a central bank digital currency (CBDC). The cryptocurrency project began on the premise that the citizens would still have access to a means of payment that has been guaranteed by the country. This would make the digital currency more stable and safer to use.
The use of cash in Sweden has been declining over the course of recent years as the general public is shifting towards more technologically advanced methods, like electronic payments. Riksbank has been looking at this change as an opportunity to introduce a digital currency in efforts to elevate a more efficient and safer system for transactions that the public can use without the fear of volatility that is present in other popular cryptocurrencies in the digital market.
Crypto Deal for One Year (and Possibly More)
The bank is looking forward to signing up with Accenture on a pilot project that will last for one year. During the one-year period, the technical platform will be developed using the technology of user-interface. This will allow e-krona to be used for transactions through everyday items to increase convenience like cards, mobile phone and other wearables that are receptive of digital currency technology.
Although the partnership is due to end on 31st December of next year, during the year-long period if both companies require more time to work on the crypto project or decide that they want to expand the plan and develop more pilot functions, the partnership can be extended to an increased time of up to 7 years.
The Swedish central bank is optimistic about the project, but it has also publicly stated that it has not yet confirmed whether e-krona will actually be issued or whether it is simply a plan that is under discussion for the bank.