A trial of central bank digital currency in Sweden is to be extended for another year to 2021, in a bid to better understand the benefits and implications of a wider roll-out.
Sweden’s Riksbank central bank has been working on plans for a digital krona in partnership with Accenture, which the bank said was designed to address the problem of the ‘marginalisation of cash’. According to the central bank, the CBDC would offer a technical solution to the issue of dwindling cash usage in the country.
Recent statements from the bank confirm there are yet no firm plans on how, or whether, a digital krona would be deployed in the country. The extension to February 2022 is designed to give the bank and other stakeholders a better chance to assess the technology, its benefits, and limitations, prior to developing more concrete plans.