Sweden’s Riksbank has looked into the viability of central bank digital currencies (CBDCs) for its local market and declared mixed results.
In a , updated June 18, the world’s oldest central bank presents four models for supplying a digital version of the Swedish krona (e-krona) as well as outlining how well the different models would fit its policy goals.
Those goals include fostering a stable store of value and unit of account, being a (LOLR) providing a secure means of payment and settlement and providing tools for preserving financial stability.
Amid that backdrop, the four models under review include a “centralized e-krona provision without intermediaries,” “a centralized model with intermediaries,” “decentralized solutions with intermediaries” and “a synthetic e-krona.”
“We have seen that all models would have advantages and disadvantages, but some seem better at fulfilling the current needs of the Swedish payment market than others,” the review reads.