The race for developing and deploying a national cryptocurrency has picked up pace throughout the globe. Ever since China made an official announcement about developing their state-backed cryptocurrency, many others have followed. Every government wants to have proper control over this emerging technology while also exploiting the various benefits that come with it.
Over the last few months, lots of reports have surfaced about national cryptocurrencies being developed and researched. Basically, there aren’t any governments or banks that haven’t researched about cryptocurrencies.
Back in October, a report by The Logic revealed that The Central Bank of Canada is considering launching a sovereign digital currency that works as a replacement for cash while also fighting the “direct threat” cryptocurrencies pose to monetary control. A part of the report read:
“We need to innovate to stay in the game,” A digital currency would provide “all the benefits” of a central bank-backed asset, it says, as well as “all the convenience and security of wireless, electronic payments.”
This month itself has seen its fair share of news. A report from a local Korean media outlet states that the Bank of Korea (BOK) has begun hiring cryptocurrency experts to head research on blockchain solutions and digital payment platforms. Prior to this, the Bank of Korea had published a paper that explored the impact of a Central Bank Digital currency on the existing monetary system.
While the BOK hasn’t yet confirmed whether it is preparing to deploy a nation cryptocurrency, the latest reports reveal that Sweden might be on the verge of initiating a digital currency project.
Popular news publication Reuters reported that Sweden’s central bank is close to signing a deal with consultancy firm Accenture to start developing a pilot platform for a digital currency dubbed e-Krona. As per reports, the partnership is set for a yearlong run-up to the end of 2020.
“The primary objective of the e-krona pilot project is to broaden the bank’s understanding of the technological possibilities for the e-krona,” a statement from Riksbank stated.
The reason for this move is the recent rise in digital payments and the decline in cash usage throughout Sweden. As per the report, this was the sole reason Riksbank has been looking to issue a digital currency in efforts to promote a safe and efficient payment system.
The news comes right after Sweden Central Bank Governor Stefan Ingves had cited a few pointers last month as to how a Swedish national cryptocurrency should function and what properties would it hold.
Sweden becomes the latest in the list of cryptocurrencies with high chances of South Korea joining in as well. With China leading the revolution, cryptocurrencies could soon be the future of the global economy.