Jeff Fawkes is a seasoned investment professional and a crypto analyst. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.
During the next year, the Riksbank will employ Accenture experts to develop state-owned cryptocurrency called e-krona.
The Scandinavians are increasing the level of refusal to use cash in their daily transactions. Partnership of the Riksbank with Accenture will allow developing new crypto payment solutions. Such as smartphone app, POS terminals, and other devices and code.
Considering the words by Christine Lagarde who shows interest in stablecoins, Sweden is “staying ahead of the curve”. European Central Bank is showing interest in stablecoins development. China will likely to restrict usage of anything except for their government-backed stablecoin.
The partnership between the central bank and the blockchain tech firm will last until the end of 2020. During that time, a competitive and strong code for e-krona should be developed and tested.
E-Krona will Be Stored Using Custodial and Local Modes
The bank’s officials claim: if the project is a reality, the e-krona will become a centrally issued asset under control of the Central Bank. It is reported that it will hold the same value as the classic physical coins and bills that are currently circulating in the country:
“The decisive difference between crypto-assets and established currencies like the Swedish krona is that the latter is actively managed by central banks that have been given overall responsibility by law for ensuring that the monetary and payment systems function in practice and are sufficiently flexible to meet the needs of society.”
The e-krona will likely have two modes of operations and storage. The first one is called “account-based”, it is where the coins are held within the bank, and the user can spend them by asking the bank to do a transaction. The second mode of storing will be called “value-based”, where the coins are stored locally, in a mobile app, on a flash-card or in a hardware wallet. This option is much more interesting to the OG crypto gigs. Because, as you may know, there is a tradition to store keys on own devices and avoid custodians.
Sweden Bankers Predict Marginalization of Cash
Sweden Central bank is one of the not so many banks researching the possibility of creating controlled cryptocurrencies. Its report reads:
“For 350 years, the Riksbank has provided the general public with money but going forwards, the technical development and digitalisation of payments will bring the issue of the state’s role to a head. If the marginalisation of cash continues a digital krona, an e‐krona, could ensure that the general public still has access to a state-guaranteed means of payment.”
It is pretty scary that such a large institution predicts the marginalization of cash payments. In many developing countries, people value the freedom to use anonymous money such as cash. It is the best anonymous payment tool free of banks watching all the transactions on behalf of shady people.
Developed countries are making all the transactions via bank cards. Because the money is legal, taxes are deducted and so on. Wealthy nations think that they may not care about shady people wanting more and more of the data and statistics. Contrary to that, Bitcoin users are bank haters and typically people who live in poor countries. They support anti-government movements of many kinds or just think that taxation is theft.
Japan, Lithuania, South Korea, Ukraine, and some other developing countries showed interest in centrally controlled stablecoins or classic cryptocurrencies. They even legalize crypto space and mining, but not to help. The taxes are the real reason, while corrupt officials may “confiscate” your crypto directly to their own pockets.