Sweden and Accenture Partner Up for the Development of E-Krona CBDC

Sweden represents one of the first European countries to actively consider the development of a central bank-backed digital currency (CBDC). Based on this, recent reports indicate that the country’s central bank has recently signed a partnership with the Irish Accenture firm, for the development of the e-krona CBDC project.

As such, Accenture will likely be responsible for the development of consumer-related features for the e-krona. This refers to the end-user framework of the digital currency, such as the platform/interface that users can leverage to pay via the CBDC on a variety of mobile platforms. Similarly, Accenture will also be responsible for actively testing the e-krona and its afferent features, especially in simulation-based online stores.

So far, the contract between the Riksbank (Sweden’s central bank) and Accenture has been signed for one year. However, the Swedish bank stated that they are willing to carry out up to 7 years of testing, to ensure that the end product is ready for public release. As such, we can easily determine that the Swedish CBDC will not be released within the short-term.

Sweden represents a great location for central bank digital currencies, given the fact that cash notes are used considerably less when compared to other countries. At this point in time, most citizens prefer paying via cards, or via mobile apps, therefore it only makes sense that the central bank is looking to develop a digital currency.

According to a press statement by the deputy governor of the Bank of Canada, Timothy Lane, “You’re actually reaching a tipping point in Sweden (…) Merchants are increasingly refusing to accept banknotes and banks are increasingly not offering services to process banknotes.”

At this moment in time, Sweden has already carried out a careful analysis of the strengths, weaknesses, opportunities and threats associated with launching a CBDC. In fact, the central bank even studied the legal ramifications of such a currency, alongside its potential impact on the financial market.