Many countries are joining the digital currency industry by initiating their creation for public use. The Central Bank Digital Currency got popular in late 2020 when China officially announced that it was launching its digital currency. The news was highly controversial because some authorities felt that the process needs more testing and presentation before it could be available for public use.
Other governments took the information as an influence to start their creation to join the rapidly growing sector. While China is currently testing its tokens within its region, other countries like Sweden are still planning. The government wants to test the new technology before moving towards issuing it to citizens.
Sweden postponed the pilot project
Some weeks ago, Sweden’s central bank, Riksbank, said it would commence its CBDC’s pilot stage within the early parts of 2021 to join the current trend. Unfortunately, there has been a plan change as the world’s oldest central bank postpones the testing stage. The country calls the digital asset e-korona, and the central bank digital asset project started around 2017.
The nation had been one of the first countries interested in the technology, and it had revealed that experts would test the currency by early 2021. The bank explained that it would extend the testing phase to 2022 and couldn’t assure if it would launch the currency for use.
Statistics show that Sweden’s cash use is gradually declining, especially with the growing interest in cryptocurrencies and online payment transactions. The government acknowledged that fact and want to give people a suitable alternative for payments with its creation of government-backed digitalcurrency.
Many countries do not want their citizens using private blockchains like Bitcoin and Ethereum, so they plan to launch their digital assets to act as a replacement. The government has previously initiated one year for its piloting phase but later changed that position due to the lengthy period.
Riksbank collaborates with private firms on CBDC’s creation
The bank had collaborated with some private firms like Accentuate to make a well-structured and DLI-based platform with an optimum interface to make things easier for citizens when they utilize the platform. The partnership was to support e-krona mobile and card payments. This would not be the case because the nation had extended the pilot project to next year.
The central bank had to postpone the pilot project to put some solutions regarding technical aspects such as scalability, testing, and performance. The central bank also shared that interested users must go through some registration processes so that the bank would have their details on record.
This registration vividly shows how different the government-issued currency is from other currencies like Bitcoin. The government would be able to track the owner and the money’s movement, showing that it would still have significant control of the currency, unlike other digital assets.
Visa had shared some information regarding digital currencies and had assured that governments could create an asset that people can use alongside physical cash. The digital asset would have better security than money, which would prevent theft and other vices.
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