The Sveriges Riksbank mentioned that CBDC expertise nonetheless requires additional investigation.
2301 Complete views
13 Complete shares
After finishing the primary section of its digital forex pilot challenge, Sveriges Riksbank has discovered some important points that should be addressed earlier than Stockholmers should buy espresso and kanelbullar with e-krona.
In a latest research, Sweden’s central financial institution introduced the primary outcomes of its central financial institution digital forex pilot on a community based mostly on R3’s Corda blockchain.
The Riksbank simulated core features of a possible CBDC system, together with liquidity provide by way of the Riksbank’s settlement system, RIX, and community members serving as e-kronor distributors. The central financial institution additionally simulated contributors, end-users and cost devices like cell apps.
The Riksbank mentioned that the brand new CBDC expertise wants additional investigation, with scalability presenting a serious bottleneck.
“The answer examined in section one of many e-krona pilot has met the efficiency necessities made within the public procurement. However this has taken place in a restricted take a look at setting and the brand new expertise’s capability to handle retail funds on a big scale must be investigated and examined additional,” the report famous.
The central financial institution additionally famous some privateness challenges, stressing that the data contained in an e-krona transaction should be protected to uphold banking secrecy legal guidelines and keep away from revealing private knowledge.
“The Riksbank is presently analysing to what extent the data saved within the transaction historical past may be considered info lined by banking secrecy and whether or not it contains private knowledge,” the financial institution acknowledged.
Mithra Sundberg, head of Riksbank’s e-krona pilot division in Stockholm, mentioned that Sweden’s CBDC may most likely require a brand new authorized framework earlier than it may be used. Given the scope of points that should be addressed earlier than an e-krona may be critically developed, Riksbank could proceed its blockchain pilots till 2026.
Riksbank acknowledged that it’ll prolong its settlement with accounting large Accenture as a technical provider to proceed e-krona testing. The main focus for the second section will embody potential distributors of the e-krona, CBDC efficiency in retail funds, in addition to storage strategies. The brand new section will even take a look at offline e-krona performance and integration with present point-of-sale terminals.
As beforehand reported, Sweden has emerged as one of many world’s earliest CBDC explorers, asserting a pilot platform for the e-krona in late 2019.