The Swedish Central Bank continues to take steps to model its e-krona pilot project by publishing a detailed report on the results of the first phase for the way forward. The Riksbank is still optimistic about bringing its central bank digital currency (CBDC) to market, but there are still some hurdles to overcome.
Riksbank spends another year exploring solutions for the pilot
According to the report called “E-Crowns Pilot Phase 1”, the central bank has highlighted that cash consumption in Sweden is “declining”. However, the Riksbank sees potential issues arising from the drop in cash and so is running a project to investigate the possibility of creating a digital addition to cash. “
However, the central bank would like to need another year to conduct in-depth research to assess how current technical solutions might fit into the e-krona project. The Swedish central bank is currently using the R3’s Corda blockchain platform.
During the additional year required, the Riksbank would like “market players” to be involved in the development of the plan, “who could potentially become participants in an e-krona network to test this technical solution,” the report said.
Such a comment could suggest that private companies and even commercial banks can participate in the CBDC pilot.
Another point mentioned in the report is the development of an “offline function”. The central bank gave details on the matter:
As mentioned earlier, the ability to make offline payments is a priority and is being further explored. In the first phase we only carried out a theoretical analysis of the possibilities of the solution. In the second phase, an offline solution with local storage of keys and tokens is implemented and used in further tests, which can convey knowledge about the possibilities and limits of the solution.
Riksbank would like to investigate integration with existing POS terminals
In addition, the Riksbank would like to look for ways to develop solutions for storing keys and tokens “in different ways” that contain the e-kronor.
In order to ensure “the process of payment in the network”, the Swedish central bank wants to develop support for the processing of payments.
The details of the Riksbank mentioned in the report include “Assessment and improvement of the performance and scalability in the E-Kronen network”, “Integration into existing POS terminals” and “Analysis of the E-Kronen network infrastructure”.
Interestingly, Bloomberg called this report “the most advanced exploration of a post-cash era to be undertaken by a great Western economy”.
What do you think of this report from the Riksbank about the e-krona pilot? Let us know in the comments below.
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