Sweden’s central bank completes first phase of digital currency pilot

After finishing the primary section of its digital forex pilot undertaking, Sveriges Riksbank has discovered some essential points that have to be addressed earlier than Stockholmers can purchase espresso and kanelbullar with e-krona.

In a current study, Sweden’s central financial institution introduced the primary outcomes of its central financial institution digital forex pilot on a community primarily based on R3’s Corda blockchain.

The Riksbank simulated core features of a possible CBDC system, together with liquidity provide through the Riksbank’s settlement system RIX and community members serving as e-kronor distributors. The central financial institution additionally simulated individuals, end-users and cost devices like cellular apps.

The Riksbank stated that the brand new CBDC know-how wants additional investigation, with scalability presenting a serious bottleneck. 

“The answer examined in section one of many e-krona pilot has met the efficiency necessities made within the public procurement. However this has taken place in a restricted take a look at setting and the brand new know-how’s capability to handle retail funds on a big scale must be investigated and examined additional,” the report famous.

The central financial institution additionally famous some privateness challenges, stressing that the data contained in an e-krona transaction have to be protected to uphold banking secrecy legal guidelines and keep away from revealing private knowledge. 

“The Riksbank is at present analysing to what extent the data saved within the transaction historical past may be considered data lined by banking secrecy and whether or not it includes private knowledge,” the financial institution acknowledged.

Mithra Sundberg, head of Riksbank’s e-krona pilot division in Stockholm, said that Sweden’s CBDC may in all probability require a brand new authorized framework earlier than it may be used. Given the scope of points that must be addressed earlier than an e-krona may be severely developed, Riksbank could proceed its blockchain pilots till 2026.

Riksbank acknowledged that it’s going to prolong its settlement with accounting big Accenture as a technical provider to proceed e-krona testing. The main target for the second section will embrace potential distributors of the e-krona, CBDC efficiency in retail funds, in addition to storage strategies. The brand new section can even take a look at offline e-krona performance and integration with present point-of-sale terminals.

As beforehand reported, Sweden has emerged as one of many world’s earliest CBDC explorers, saying a pilot platform for the e-krona in late 2019.