Swedish Riksbank report looks at collaboration with potential e-krona in retail payments
Sweden's central bank Riksbank has released a report detailing the third phase of its central bank digital currency (CBDC) research. A collaborative model for retail payments and conditional payments is the focus this time.
The Riksbank started its CBDC research in 2020 with collaboration with existing private payment services as an initial priority. It discussed governance as a key question for collaboration and divided options into three levels. The lowest level was a set of guidelines that risked giving participants so much freedom that “it may be difficult for the public to form a common understanding of what an e-krona is.” In addition, it may not develop to serve the entire population.
The other end of the spectrum would be a Riksbank-operated app where “the interface and range of services for the e-krona would […] be standardised and common for all participants.” It noted that setting of those parameters could have a high impact on innovation.
The Swedish Central Bank, Riksbank, is creating the E-krona #CBDC and is already in pilot phase 3.https://t.co/k9GOBxA6uE
The Riksbank reported on a successful trial conditional payment involving the purchase of a car. While this was a positive sign for the potential e-currency’s programmability, it raised privacy questions due to the extra information that was necessary to complete the complicated transaction. Furthermore:
The Riksbank pointed out that the transparency inherent in the system could have implications for bank secrecy and could be useful for uncovering bad behavior on the part of service providers.
Related: Going cashless: Norway's digital currency project raises privacy questions
While the Riksbank, similarly to the United States Federal Reserve and European
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