Sweden, which has become the first cashless society, may also become the first country to introduce a national crypto currency. The Riksbank – Sweden’s central bank – has already taken initiatives to launch the crypto currency, e-Krona, in two years. Following the launch, e-Krona can be used for small purchases, and can be accessed by individuals, businesses, and financial institutions at any time.
The central bank’s governor Stefan Ingves said the country has been at the forefront of financial innovation over the years. To substantiate his point of view, Ingves said the first modern banknote was created 350 years before, and that was in Sweden. It is the also the first country where cash is in the final stage of becoming a thing of the past. By launching e-Krona, the country may be making a new history again.
Crypto specialists speculate that e-Krona will have its value stored in an app or card, rather than a central database. It could be even a registry-based system with e-krona held in accounts maintained in a centralized database. Once the framework is created, it could be easy to implement the necessary changes over time. If cash usage keeps decreasing, then central government should find another way to provide cash to those who need it. The process should not involve any intermediates, as that will raise data security concerns. Therefore, block chain technology is the most suitable option.
The use of alternative forms of payment such as a credit/debit card will allow scrutiny of individual spending behavior, and users are increasingly weary of that. The use of block chain technology provides the much needed data security, and banks have started realizing that centralized intermediates will not be in their or customers’ best interest.