Central Bank of Sweden Releases Economic Review of CBDC

0
73
CBDC. 1
CBDC. 1
  • An economic review published by the central bank of Sweden revealed insights on the central bank digital currencies (CBDCs) case.
  • It is the most detailed data on this CBDC coming from the central bank of Sweden.
  • A 98- page document published by Riksbank discusses e-krona, a fiat token issued by the central bank.

An economic review published by the central bank of Sweden revealed insights on the central bank digital currencies (CBDCs) case. It is the most detailed data on this CBDC coming from the central bank of Sweden. This economic review is the most recent effort in the process of the development of CBDC in Sweden.

A 98- page document published by Riksbank discusses e-krona, a fiat token by the central bank. The preamble of the report consisted of a segment where the bank highlighted that the focus of the theme would be CBDCs in specificity.

In December 2019, the pilot scheme made public, in which the authorities were to test the viability of e-krona, in association with Accenture.

Economic Review: An Insightful Study on CBDC

This economic review recalls previous work done towards CBDC as well as actual progress today. It mentions that different perspectives adopted to study CBDC, practical as well as analytical thoroughly. The opportunities and difficulties that may face a digital currency from a central bank. The main issues are cybercrime, money laundering, and fraud. 

Disadvantages Involved with CBDC

There may be numerous setbacks due to the open DLT network as it requires verification of each participant for every transaction. It can be a tedious task that takes up too much time. Also, Riksbank shall be liable for KYC, CTF, and AML. Cybercrime and fraud are also difficult to control in an open network. 

This latest development concerning CBDC released at a time when there is much interest generated in digital currency from central banks all over the world. However, other global banks are in the process of developing and testing their projects of CBDC. 

This economic review with the feasibility of this project shall give perspective to many other institutions as well. Thus, It may also generate more interest from other parties in CBDC.

How useful was this post?

Click on a thumb to rate it!

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

LEAVE A REPLY

Please enter your comment!
Please enter your name here