Sweden Planning e-Krona

Sweden’s central bank, the Riksbank, is spearheading international cooperation on the development of officially sanctioned cryptocurrencies and could be the first to launch its own, according to a note from analysts at HSBC.

Broadly, the note takes a look at the state of Sweden’s economy—which HSBC calls “one of the world’s most interesting”—before drilling down to the possible introduction of a so-called “e-krona,” something that might occur within the next couple of years, although “2018 may be a little too soon,” Business Insider reported.

Sweden’s economy has one of the lowest cash usage rates of anywhere in the world, with cash use often actively discouraged by shops and other businesses. There are even anecdotal tales of beggars and buskers having card terminals to take payments on the street.

As such, it makes sense that the Riksbank is at the forefront of discussions of what a central bank issued cryptocurrency could look like.

As HSBC economist James Pomeroy notes: “The so-called e-Krona will have to be able to be used for small purchases, as a claim on the Riksbank and be accessible by companies, individuals and financial institutions at all times.”

Interestingly, the Riksbank has been at the forefront of advances in money throughout history, with HSBC flagging a speech by the bank’s governor, Stefan Ingves, in December, when Ingves pointed out that: “It was in Stockholm that the first modern banknote was created more than 350 years ago, and that it is here, in Sweden, that cash is currently taking its last breaths. Perhaps the Riksbank will be writing history again.”