International Finance
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Sweden’s Riksbank contemplates digital currency

Could potentially develop a new payment system after seeing a substantial dip in the use of conventional currency IFM Correspondent November 22, 2016: Sweden’s central bank — Riksbank — is considering the option of using digital currency. This is mainly due to the fact there has been a drastic decrease in the use of notes and coins, accompanied by an increase in the use of...

Could potentially develop a new payment system after seeing a substantial dip in the use of conventional currency

IFM Correspondent

November 22, 2016: Sweden’s central bank — Riksbank — is considering the option of using digital currency. This is mainly due to the fact there has been a drastic decrease in the use of notes and coins, accompanied by an increase in the use of digital currency.

“The less those of us living in Sweden use bank notes and coins, the clearer it becomes that the Riksbank needs to investigate whether we should issue electronic money as a complement to the money we have today,” Cecilia Skingsley, the Deputy Governor of Riksbank, explained.

Riksbank could potentially introduce a new payment system, as it feels that the Nordic state needs to be the frontrunner in developing new payment systems.

They are likely to develop their own e-currency in the next two years after considering the legal, economic, technical and security aspects.

The world has already seen digital currencies, such as bitcoin, but none of these are backed by commercial banks. In that sense, Riksbank will be a pioneer.

The measure to develop a national digital currency would give the central bank much more control over the financial system which is already in place.

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