When the coronavirus pandemic struck around this time last year, the entire world was thrown into confusion, and people had to stay indoors. As to that effect, most people had to take their affairs online, including buyers and sellers. While that was seen as the new normal, banks started to make moves to create a currency that would be spent without the need for moving or holding onto physical cash.
That signaled the birth of various CBDCs across the world. Even though China had started its research some years prior, the country could only go as far as that. In recent light, the Swedish government has announced that their digital currency’s trial phase has been successful.
Swedish Central Bank says the e-krona has scalability issues
While that is something to cheer and be happy about, the bank has said that there are still some crucial problems that must be addressed before they eventually roll it out. The bank pointed out that after the first study was carried out on it, the test results were now ready.
In the report that was submitted, the bank mentioned that it had to tweak various aspects of the digital currency based on certain things, including the liquidity system using the settlement network that is being used by the bank and the network that the merchants of the digital currency would be using.
The bank also announced that it also made a few tweaks to the users of the currency and some other use cases that might arise as a result of using the currency, including the use of mobile apps. The bank mentioned that at the end of the day, they discovered that they would have a lot to do in terms of scalability as that was the main issue that the currency had.
Analysts predict that the development of the e-krona might take a lot of time
In the official statement, the bank mentioned that the e-krona was tested based on the use by the general public, citing various requirements. It noted that even though they were aware that there would be issues regarding broader use, they first decided to test the currency in a small and controlled environment. Also, as the days go by, further tests would be conducted as they see fit.
The bank has also talked about the privacy rules regarding the use of digital currency as they would not want a scenario where transaction details of users would be exposed to their parties. It also said that tests are ongoing to determine to which extent the transactions that customers make using the e-krona would be covered by banking laws.
The official in charge of the test noted that they would be looking to develop a new legal framework if they expect the people to start adopting and using the e-krona. With these issues and more lingering, the bank would still be working on the pilot of the e-krona in the foreseeable future.