The Bank of Sweden has announced a plan to develop and test a mechanism for using digital currency. The press release of the Swedish Central Bank notes that a company has already been selected which will be responsible for the technological aspect of the project.
As part of the project, a digital platform will be developed that allows payments by electronic Krona “using a mobile phone, credit card and smart watch”.
As part of the testing, the platform will also allow simulating the execution of payments within payment systems, retail stores, as well as other parts of the Swedish payment system.
This test phase of electronic Krona payments is expected to last until December 31, 2020. At the same time, the central bank allowed further extension of the test period for up to 7 years.
The main goal set by the Bank of Sweden during the implementation of this digital currency project is to “expand the understanding of the technological capabilities of the digital Krona.”
The Central Bank of Sweden, therefore, becomes one of the first world central banks to begin active testing the use of digital currency as the main means of payment instead of traditional paper money.
Earlier, the central bank also published a number of key points for the development of the electronic Krona project, noting, in particular, the decrease in the use of paper banknotes in the country, as well as the development of technologies in the field of electronic money and payment systems.