While many “so called experts” keep harping on the fact that cryptocurrencies are destined to fail in the coming future, every day we see more and more evidence that not only are they here to stay, but their global adoption has already ensued. In a groundbreaking move by Sweden’s central bank (called Riksbank), we have found that the national bank is looking to work in conjunction with other international agencies to come up with its very own cryptocurrency.
This news first entered the airwaves last month, but it is now official that the development of this alt-asset has already started. In an official release note, HSBC head James Pomeroy sent out an email to all of the company’s clients titled“Sweden’s big year: Can the economy overcome some challenges?”
About the Swedish Economy
Many people often tend to overlook this nordic nation, but Sweden has been consistently found to be one of the most economically stable countries within Europe for many years running now.
To be more specific, we can see that Sweden has one of the “lowest cash usage rates across the globe”. In fact, the government actively dissuades people from using hard currencies, and as a result of this, the corruption rates within this country are amongst the lowest in the world.
More About E-Krona
With the country already making use of a widespread digital payment network, it makes sense that the nation’s central bank (Riksbank) is looking to adopt a cryptocurrency based payment model.
As per our findings, we have found that Riksbank has been conducting widespread research into this domain, and has been at the forefront of discussions of “what a central bank issued cryptocurrency could look like”. E-Krona (the envisioned currency) is being designed to be used for everyday transactions, and will be available for use with even the smallest of purchases.
It will be made to work via one of the two following models:
- Value based mechanics
- Register based system
The value based system will resemble the model that is currently used by most fiat currencies. However, the register system will work differently, and will require the E-Krona to be stored in accounts, that will then be held within another localised database.
What Are The Experts Saying?
Ever since the announcement of this cryptocurrency, more and more people are waiting to see how the execution of such a novel technology pans out. According to HSBC head Mr Pomeroy “This venture could be quite a challenge, but over time it could be easier to adopt such a currency (especially with the help of the blockchain).”
He goes on to add that “A Central Bank Cryptocurrency (CBCC) would use blockchain technology, whereas a non-blockchain solution would make the e-Krona a ‘deposited currency account’,”
Other Similar News
With the news of E-Krona spreading throughout the world like wildfire, even the Bank of England has released cryptic statements which suggest that it too, might be planning to release a cryptocurrency sometime this year.
While there is no official word on such a release, a spokesperson from the bank has hinted that there is already research that is underway, and if things workout, there might be a government endorsed cryptocurrency released within the UK by the end of this year.