The Central Bank of Sweden will involve commercial banks in testing the digital crown

The Central Bank of Sweden will involve commercial banks in testing the digital crown

The Central Bank of Sweden has completed the first stage of testing the state cryptocurrency-the digital crown. This year, the second stage of testing will be launched together with commercial banks.

As reported by
Reuters with reference to the report
The Central Bank of Sweden, as part of the first stage of the digital crown pilot project, the payment system in the state cryptocurrency was modeled only within the framework of the Central Bank’s infrastructure. However, the next phase of the project involves the inclusion of commercial banks in testing to explore the possibilities of commercial and retail payments.

“Technology opens up new opportunities… but it has not yet been used when it comes to processing retail payments at scale and with the required level of security,” according to a statement from the Central Bank of Sweden, attached to the report on the results of the pilot testing of the electronic crown.

In February last year, the Swedish Central Bank began
testing Europe’s first state-owned cryptocurrency. The aim of the initiative was to show that citizens can benefit from the use of the e-crown.

The Swedish Central Bank said it could not yet confirm which banks or payment systems would participate in the next stage of testing. However, the purpose of further research is to assess how the e-crown can be used for both large commercial and small retail payments.

Many Central banks are exploring the possibility of issuing state-owned cryptocurrencies. However, so far only the Central Bank of the Bahamas has launched
Sand Dollar, and Sweden and China were among the first countries to launch testing of their state-owned cryptocurrencies. Recall that last year, the Central Bank of Sweden studied
the potential of four different models of state-owned cryptocurrency for the local market and published the results of the study