This article provides a small snapshot of the 20 page report evaluating the E-krona pilot published by Sweden’s central bank the Sveriges Riksbank.
The report suggests that more research is needed to validate performance and to resolve issues that occurred in the transaction history. Not mentioned in the report was the complaint made by bankers that are concerned the CBDC would have an impact on their deposit base:
“The central bank of Sweden, the Sveriges Riksbank, came up with several issues that need to be dealt with before the digital version of the Krona can be officially launched. In the said report, the central bank also announced the conclusion of its first trial leg.
The Riksbank incorporated all the fundamental aspects of a potential CBDC system during the test, including end-users, participants, and payment applications. However, one aspect that this novel technology needs to cater to, according to the central bank, is the “scalability” factor. The report said,
“Further investigation is needed to see whether it can manage retail payments at the scale and fulfil the requirements of digital central bank money.”
Catering to the legal aspect, the report explicitly pointed out that the state would act as the guarantor of the value of the e-krona. It also highlighted how the presence of a parallel payment network would make the entire financial landscape even more robust.
It’s worth underlining, however, that a couple of months back, bankers in Sweden had voiced their concerns with the CBDC project, pointing to its direct impact on their deposit base. Now that the report has been published, industry-based comments are awaited.”
Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group