Sweden’s e-Krona Cryptocurrency Project Prepares for Launch of Its Digital Fiat
The central bank of Sweden, Riksbank, has been toying with the idea of using the digital money for a while now, as it needs to adapt its increasingly cashless society. Because of this, the government is currently with plans to launch a new cryptocurrency called e-Krona.
As the country moves to the cashless economy, though, people from the government are afraid that they will turn to private agents, so the company is being quick to speed up the launch of Krona and get an edge in this competition against the market.
The national currency of Sweden is known as Krona, so its digital version will be known as the e-Krona. The reason for the existence of this new token is that the bank wants to give its citizens a new cashless option in case they need it.
Just last year, the government issued a report describing what this new token would look like. At the moment, the reports state that the e-Krona will start its pilot scheme in 2019 and that it will be implemented in 2021, but the tests may take more time and are pending public approval.
E-Krona will be used as a compliment to the physical cash first but it will be the official and only currency after some time if the plans from the government actually happen.
As many retailers are now refusing to take paper money and only 13% of the Swedes have paid their last purchase using cash. With the launch of the new money, it looks like the country is trying to fix the issue, but it may backfire and actually leave people who are not using digital money in a more troublesome position.
Elderly and disabled people are sometimes impacted by these changes and the government has not released any good explanation so far that would explain how they would deal with this issue that could affect these people so there are some reasons to be afraid if the system goes full digital in the next couple of years.
However, the concerns of the bank to lose its space to services like Paypal and cryptos is very strong, so it does not look like this small part of the population is the most important concern of the government right now.
Will Digital Fiat Affect Cryptos? How?
As you are most likely a crypto enthusiast and a Swedish citizen, you are probably more worried about how this can affect the crypto market.
The answer is still very complex as nobody is quite sure. There is a double-sided effect in progress here: while digital coins may teach people how to use digital tokens and be good for cryptos, governments are generally more trusted than decentralized tokens or private companies and foundations.
This means that there is surely more space for cryptos as money goes full digital but that there are more options, too. In any case, it is likely that Bitcoin’s success will depend more on the crypto market itself than in these new tokens as most of them will not have any revolutionary tech.