Central Bank Digital Currencies seem to be all the rage right now with countries from China to the Bahamas developing and releasing pilot versions of their own Central Bank Digital Currency. Many believe this is in response to the rise of digital currency in general and with China announcing their own in 2019, many countries feel the need to keep up with this development lest they lose their dominance in the world economic scene. Even in the United States, there have been calls from top government officials for more effort to be put into a possible Central Bank Digital Currency, particularly in response to China.
Now, Sweden has begun the official pilot testing for its own Central Bank Digital Currency and this is expected to go on for the next year and bring the country closer to fully launching their currency.
Then new currency in question is a digital version of the Krona which is called the E-Krona and it will be in testing up until February 2021. After this testing, It is believed that the token will then be widely available in Sweden. Once it is fully launched, it is expected that it will drive conventional payments as well as banking transactions throughout the country of Sweden. Rather than use fiat currency or cards, the payments will be transacted through the blockchain. This means that there will be a new refutable ledger of all payments and this will make it easier for the government to track the movement of money for economic policy development, tax purposes on the prevention of crime.
Besides the Bahamas, Sweden is the next country in the world that has officially launched the pilot for its Central Bank Digital currency and this is not particularly surprising as Sweden is one of the most classless societies in the world and is very tech-forward. China, on the other hand, has a large landmass and population and has not launched its digital currency just yet but it is sure to make headlines when it does launch. Now, the world is looking towards other countries such as the United States and the United Kingdom to see if they will follow in this trend as well.