Swedish Central Bank Finishes Phase One Of the e-Krona Digital Currency Test Pilot
- Riksbank has revealed the finalization of the first phase of its digital currency project.
Today, the Swedes learned that they might have to wait a little longer to use an e-krona for their daily uses after the Swedish central bank realized that there are minor issues that need addressing after the first phase of a central bank digital currency (CBDC) project.
The Riksbank released a study that details the results of the first phase of its CBDC project that will run on the Corda blockchain.
The central bank tested several core issues of a future CBDC system, such as liquidity supply using its own settlement system dubbed RIX with the network membership being used as the e-kronor distributors. Other aspects tested were payment networks such as mobile apps, participants, and end-users.
The main challenge identified with the system was scalability, with the central bank saying further modifications were needed. The report says,
“The solution tested in phase one of the e-krona pilot has met the performance requirements made in the public procurement. But this has taken place in a limited test environment, and the new technology’s capacity to manage retail payments on a large scale needs to be investigated and tested further.”
The Riksbank also indicated that there were challenges in information privacy, stating a need to check if it meets the banking secrecy laws and whether the system protected personal data.
Swedish central bank had indicated that it would be ready to launch the CBDC system in 2018 but has postponed the launch date for years. The Riksbank now says the second phase of the project might not be piloted until next year and gives itself until 2026 to be fully ready.
The head of Riksbank’s unit in charge of the project insisted that it is not right to settle on the system before knowing the digital currency's exact work. The Riksbank has also made it clear the project will not replace its fiat any time soon.