April 17, 2021

The Central Bank of Sweden completed the first stage of testing the national digital currency

The regulator has discovered several critical issues that need to be addressed before the digital crown will become available to residents of the country.

The central bank of Sweden has completed the first phasea pilot project of its own digital currency. The regulator has identified several critical issues that need to be addressed before the digital crown becomes available to residents of the country. The authorities are concerned about the scalability of the currency.

“The solution tested at the first stageof the e-krona pilot project, meets the performance requirements set in public procurement. But this took place in a limited test environment, and the new technology's ability to manage retail payments on a large scale requires further study and testing, ”the report said.

Also, the Central Bank of Sweden drewattention to security issues, since the information that is recorded in transactions is subject to bank secrecy, and this data must be kept confidential.

Head of the pilot unit of the e-krona inTo the central bank of Sweden, Mitra Sundberg admitted in an interview with Bloomberg that before the introduction of digital money, it may be necessary to create a new legal framework. According to her, given the volume of tasks facing the regulator, testing the e-krona may drag on until 2026.

In early April, the Bank of Japan began the first phasetesting its own digital currency, which will last until March 2022. As part of this phase, the regulator will test the main functions of the digital currency as a payment instrument. In total, three stages of testing are planned.

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