Sveriges Riksbank is also partnering with Norway in Project Icebreaker to test the viability of CBDCs in international retail and remittance payments.
Handelsbanken, considered to be one of the oldest and largest banks in Sweden, has emerged as the first participant in the central bank digital currency trial spearheaded by Riksbank.
The governor of Sweden’s central bank has issued a five-year time frame within which he expects the country to have a central bank digital currency.
The main obstacle encountered during the trial was scalability, which it identified as a potential bottleneck to adoption, according to Riksbank.
A trial of Sweden’s e-krona will be extended for another year to 2021, in a bid to better understand the benefits and implications of a wider roll-out.
Swedish bankers are weighing up the risks of a digital currency to their deposit base, as plans for the rollout of an e-krona continue at pace.
The review will reportedly take two years, with the results expected to dictate the way forward for the European nation.
The 98-page document discusses Riksbank’s plans for e-krona, the Swedish central bank’s issued fiat token.