Sweden’s Central Bank lays out its plans for its digital currency

Sweden’s Central Bank lays out its plans for its digital currency

Stefan Ingves, the Governor of Sweden’s central bank, Sveriges Riksbank, has laid out his six-step plan for the introduction of is central bank digital currency.

Part one of the plans is that both large value and retail payments must be settled in the central bank digital currency anywhere around the world, at any time, all year round.

Part two, cross-currency and cross border payments must also be settled in the central bank digital currency at any time.

Part three concerns what will constitute as legal tender if banknotes disappear tomorrow.

Part four is the implementation in the digital world and securing the korona with AML regulations.

Part five is a distinction between wholesale central bank money and retail central bank. The central bank digital currency is related to retail because as Ingves said  of wholesale money “we already have and have had for a long time.”

Part six is very important and deals with the requirement for physical money. In cases, the digital network goes down, such as if the electricity goes out as Ingves said then you still need physical banknotes somewhere in the country or more accurately to be under the control of the central bank.

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