After successfully launching a state-backed e-currency, the Petro, the Venezuela seems to have inspired many countries. Latest unconfirmed reports indicate that Sweden is working on its cryptocurrency E-Krona. The government is launching E-Krona to compete with private digital currencies in the global market. Many countries around the world are showing a lot of potential and interest in running state-backed cryptocurrencies and Sweden is definitely on the frontline.
As Sweden switches to the cashless society the country’s central bank is, says there need to be an alternative that allows people to have access their money in liquid form.
Sveriges Riksbank is planning to launch the e-krona as a digital currency similar and equivalent to the country’s regular currency. The new crypto will be used for small transactions between companies, consumers and the authorities.
OTA is a distributed ledger used by the public and which uses “Tangle”, a directed acyclic graph which uses data structure that doesn’t have Chain, Book and Miners. This means every participant has to actively take part in the consensus of the network to make a transaction.
The country’s central bank seem to have a pre-meditated approach to that whole project that money will be kept in a database and its value will accessed using a card or app. It is also developing security and anonymity, adherence to KYC rules and Anti-money laundering.
Eva Julin, who is leading the e-Krona project, said that central is finalizing on the IOTA of the project and has completed negotiations with 19 companies.
However, even as the project prepares to get on feet, Bank of International Settlements has become the latest critic. The bank has raised concerns towards the central bank saying that the move is likely to put to risk the stability of the global financial systems. Bank said the central bank is launching the new platform so as to beat competition from other players outside the official sphere. Finally the bank said the move is expected to create a lot of threat to the country’s financial system. The project, which is in its initial stages of development, is expected to be ready for launch in 2019.