Sweden’s Riksbank completes first stage of CBDC pilot
07 Apr 2021
A recent study carried out by Sweden’s central bank showed the preliminary results of its central bank digital currency (CBDC) pilot.
Riksbank tested out core aspects of a possible CBDC system, such as liquidity supply via the central bank’s settlement system, Cointelegraph reports, and also simulated participants and payment instruments such as mobile apps.
Sweden’s central bank stated that the CBDC tech needs further analysis, with scalability issues causing delays.
The Riksbank report stated: “The solution tested in phase one of the e-krona pilot has met the performance requirements made in the public procurement. But this has taken place in a limited test environment and the new technology’s capacity to manage retail payments on a large scale needs to be investigated and tested further.”
In addition, a number of privacy problems arose, with the bank highlighting the data contained in an e-krona transaction needs to be safeguarded to comply with banking secrecy laws and to sidestep disclosing personal data.
The bank said: “The Riksbank is currently analysing to what extent the information stored in the transaction history can be regarded as information covered by banking secrecy and whether it comprises personal data.”
According to the head of the central bank’s e-krona pilot division in Stockholm, Mithra Sundberg, the country’s CBDC will likely need a new legal framework before it could be utilised.
As such, Riksbank may continue blockchain pilots until 2026.
The next stage of the testing will include “offline e-krona functionality and integration with existing point-of-sale terminals”, reports Cointelegraph.
Sweden was one of the first countries to look into a CBDC, announcing an e-krona pilot back in 2019.