- Sweden have began exploring how its CBDC project will impact its economy
- European Union also looking at how similar projects would bolster the continent digital payment system
The government of Sweden has begun to explore the possibility of running a Central Bank Digital Currency (CBDC). According to the report, the country had set up a panel which had a mandate of studying what the benefits of a digital currency is and the possible effects of such currency on its economy.
According to Bloomberg, the Swedish government was reviewing the viability of a digital krona. The government review was to check how feasible it would be for the actualisation of a digital currency and how the government can utilise the current digital payment architecture.
This government review team would be led by Anna Kinberg Batra who was the former head of the Riskbank’s finance committee. There is no denying that Sweden has one of the most advanced cashless payment systems in the world, the country’s foray into CBDC would, thus, require little stress on the part of the government.
However, regardless of this system, the government has stated that the review is expected to run for over a year at least. The finance minister of the country, Per Bolund, said it would take this long because the country wants to ensure that its digital payment system would function safely and would be inclusive.
CBDC projects witnessing more growth and support
Most countries have begun to look at how they can complement their financial system with a CBDC project. This is being done in a bid to improve digital payments while also bolstering the overall economy.
In Europe for example, the European Union has confirmed that it has plans to work on a digital Euro project soon. According to the European Central Bank (ECB), the Union exploration of the CBDC projects would begin to give results by 2021, after then, the union can begin to look at how to draft a module for the digital euro.
China has also been able to register a little bit of success with the implementation of its digital Yuan. The Asian country currently leads the pack when it comes to CBDC projects.