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Swedish Riksbank tests CBDC with Accenture

The Riksbank, Sweden’s central bank, is conducting a pilot project for the e-krona with Accenture, to develop a technical solution and show how it could be used by the general public.

The pilot for the central bank digital currency (CBDC) will be based on distributed ledger technology in an isolated test environment, so that the Riksbank can increase its knowledge on the subject.

The central bank stated that the project is purely for research purposes, as there, currently, is no decision on issuing an e-krona, how to design it or which technology should be used.

In its statement, the bank said it is looking at how a digital currency could be a complement to cash.

“The aim of the project is to show how an e-krona could be used by the general public. A digital krona should be simple, user-friendly as well as fulfil critical requirements for security and performance,” Riksbank said.

READ MORE: Central banks assessing digital currency is ‘ironic’

In the test environment, simulated users will be able to e-kronor in a digital wallet, make payments, deposits and withdrawals via a mobile app, as well as via wearables such as smartwatches and cards.

The DLT will also be evaluated in the test environment. Participants, such as the general public and the banks, are all simulated.

The pilot project runs for a year, until the end of February 2021, with the option to extend and further develop the technical solution.

Gavin Smith, CEO of cryptocurrency consortium, Panxora, said it is great to see another country joining the race to become the first with a CBDC.

Commenting on the announcement, Smith said: “With leading cryptocurrencies continuing to grow, countries are becoming aware of the need for the versatility that digital tokens can provide. And despite being built around a different set of conditions, central bank e-money is nonetheless a valuable addition.

“As e-money moves the mainstream market towards acceptance of digital tokens, this could also expand the use of existing cryptocurrencies and make the overall digital token ecosystem more mainstream and valuable.”

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