Sweden’s Central Bank about to release its National Digital Currency

Sweden’s Central Bank about to release its National Digital Currency

digital currency

The government of Sweden has made its intention of launching a nationally backed digital currency public. The Swedish government through the central bank of the country—Riksbank is planning to replace the FIAT currencies currently in circulation with a digital currency known as — e-koran.

Reasons Behind the development of the e-Koran

Riksbank has described the cashless society in Sweden has one which is far beyond what is seen in any part of the world. The bank made it known that most banks in the country no longer deal in FIATs. The report has also shown that this has made things a bit difficult for some group of individuals, notably the elderly.

e-koran and Financial System Stability

Based on a report from the central bank of Sweden, the introduction of this new digital currency, e-Koran is expected to help the country maintain its financial system stability.

It should, however, be noted that not everyone is a fan of this recent development. Many have expressed their lack of trust in the digital currency. Many have cited an example involving cryptocurrency and how they tend to crash over time. The bank has however made it known that the digital currency will not be treated like cryptos and they will be used alongside paper currency, at least for the time being.

The central bank has also released a statement which said that:
“There are currently groups in society that are encountering problems as cash use declines because they find it difficult to use digital payment solutions for one reason or another. Such groups include older people, people with disabilities or those who, for different reasons, do not have access to payment instruments other than cash. Since it cannot be expected that the private market fully caters for these groups, the state can choose to take greater responsibility for them.”