Sweden's Central Bank Considers Digital Currency Use

Sweden's central bank could soon launch its own digital currency – though it hasn't yet decided how the offering would work.

Nov 15, 2016 at 9:15 p.m. UTC
Updated Sep 11, 2021 at 12:37 p.m. UTC

Sweden's central bank is now considering the possibility of issuing its own digital currency, though the exact technology it will use is yet to be determined.

As profiled in The Financial Times today, Riksbank said it is facing pressure to make the switch following a decline in domestic cash use. (According to the report, the amount of notes in circulation has declined 40% since 2009).

Cecilia Skingsley, deputy governor at the Riksbank, said the bank is currently considering the tradeoffs of various technologies. Though she did not mention blockchain specifically, the FT cited the technology as one option the central bank might consider.

Skingsley said:

"We need to do the homework because it’s not an option for the public sector to stay on the sidelines and see the private sector cut off access to central bank money for individuals."

Notably, Skingsley said that the digital currency could be issued alongside banknotes and coins, but that Riksbank would not want to encourage illegal activity through the offering.

Skingsley is expected to expand on the idea in a speech tomorrow.

With the news, Sweden becomes the latest nation to see its central bank consider a digital currency, a process that for most has included at least some exploration of blockchain-based digital currencies.

In recent months, the Bank of England has openly discussed and explored issuing a digital currency using blockchain, while the People's Bank of China is reportedly investigating the idea.

Swedish Krona image via Shutterstock 

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
A16z Doubles Down on Crypto Investments Despite Market Downturn, and NFL Launches Play-to-Earn NFT Game

The most valuable crypto stories for Wednesday, May 25, 2022.

The most valuable crypto stories for Wednesday, May 25, 2022.

CoinDesk - Unknown
2
CoinDesk - Unknown
OCC: ‘No Contagion’ Post-Terra Collapse

A surprisingly measured set of comments from Acting Comptroller Michael Hsu.

A surprisingly measured set of comments from Acting Comptroller Michael Hsu.

CoinDesk - Unknown
3
CoinDesk - Unknown
Nvidia’s Crypto Mining Chip Revenue Now 'Nominal' Following Months of Decline

A drop in crypto mining chip sales dragged down the chipmaker’s OEM business unit year-over-year.

A drop in crypto mining chip sales dragged down the chipmaker’s OEM business unit year-over-year.

CoinDesk - Unknown
4
CoinDesk - Unknown
How to Make It in the Metaverse

In this work of fiction, a woman buys a home in the metaverse because New York City rent is just too high. But virtual worlds exact their own cost of living. This piece is part of CoinDesk's Metaverse Week.

In this work of fiction, a woman buys a home in the metaverse because New York City rent is just too high. But virtual worlds exact their own cost of living. This piece is part of CoinDesk's Metaverse Week.

CoinDesk - Unknown