Sweden joins China and South Korea in the Central Bank crypto race

Hardly a day goes by without the next central bank jumping on the crypto train. Yesterday it was South Korea, today it is Sweden, which announces its plans for the introduction of a crypto crown (“e-Krona”).

 

Pilot partnership for the e-Krona

The Swedish central bank plans to sign a contract with multinational professional services company Accenture to test the launch of its CBDC, the e-Krona. According to reports, the partnership will initially run for a year until the end of 2020. As the Riksbank explains:

    “The main goal of the e-Krona pilot project is to expand the bank’s understanding of the technological possibilities of the e-Krona.”

Cash usage in Scandinavia is already decreasing, which has prompted the central bank to start exploring a digital option in 2017. The partnership with Accenture includes the development of a payment platform with a user interface that enables e-Krona transactions of cards and smartphones. There is no confirmation from the bank that a crypto crown will actually see the light of day in the end – but that is very likely under the circumstances.

    Industry watcher “Rhythm Trader” compares cryptocurrencies to the “space race of our generation” – and Bitcoin is the king of all.

 

Crypto ETP approved

Sweden is more proactive than other countries in the region when it comes to crypto assets. Earlier this week, the Swedish Financial Regulator (SFSA) approved the Swiss crypto ETP provider Amun. According to the announcement, Amun is the first issuer to offer fully secured, passive investment products with cryptocurrencies as an underlying. Amuns President Ophelia Snyder:

    “Our mission is clear and that is to help investors invest in crypto asset classes more securely, cost-effectively and easily with our crypto-ETPs. We recognize that the Swedish legal framework has supported such initiatives and we welcome its considerations. ”

The company plans to expand its range of crypto-asset “Exchange Traded Products” (ETPs) in the European Union.

Sweden is the youngest country among many involved in the research and development of a CBDC. The South Korean central bank has also started hiring blockchain experts, and Lithuania has published a research paper on the feasibility of the central bank’s digital currencies.

Earlier this month, Japan unveiled its findings on the potential of a CBCD, and leaders of the European Central Bank also expressed the urgency to innovate accordingly. China is currently leading the race and that should be the catalyst.