Plans to launch a digital version of the fiat currency, Krona, is on the way, says the Swedish government.
The country which has come to embrace a cashless system, has expressed fear that its citizens will turn to means of payments provided by “private agents” without “state-guaranteed” digital cash.
According to a report which was released last year by Sweden’s Riksbank, it said government is looking into a possible launch of a digital alternative to their national currency, the krona. The document detailed how the electronic fiat coin would look and function.
More so, the government released another statement today, asking for the set date of the e-krona to be brought forward.
The Riksbank document states:
“If the marginalisation of cash continues a digital krona, an e‐krona, could ensure that the general public still has access to a state-guaranteed means of payment.”
It went on to state that not creating such a digital representation of their existing fiat currency would risk the public searching for “means of payment” services provided by “private agents”. Exactly what was meant by that is unclear.
However, the reports also called for the pilot scheme for the e-krona to be moved forward to 2019; this is to ensure that implentation for the digital currency begin by 2021, pending approval.
Fortune’s recently released figures, shows that Sweden is rapidly moving towards a cashless society.
Retailers are now refusing to take paper money at all and in a recent survey only 13% of Swedes paid for goods purchased using cash.
However, those unable to keep up with modern technology are very much at risk of being excluded from the economy.
It seems likely that the speeding up of the launch of the e-krona will exacerbate, rather than address, these emerging problems.