Bank of Sweden summed up the first phase of testing the digital krone

Bank of Sweden summed up the first phase of testing the digital krone

The Royal Bank of Sweden has published a 21-page report on the first phase of testing the digital krone (e-krona). The regulator is known to have used R3’s Corda blockchain platform to test a prototype of a local CBDC. Based on this platform, which the regulator described as a “decentralized private system,” the Royal Bank of Sweden has built its own decentralized system.

As the regulator emphasized, “the fact that the system used in the trials is decentralized means that digital kroon transactions are recorded at system participants instead of being recorded in any centralized database. Participants, such as banks and payment service providers, manage nodes in this system and are thus able to request issuance of the digital krone, as well as conduct exchange transactions with this digital asset.”

The regulator was able to test how e-krona works in transactions, using mobile apps as well as the local RIX money transfer system. In the end, the Royal Bank of Sweden said that the test was satisfactory, but it also made them wonder how fast transactions would go if the volume of transactions with e-krona increased many times. So far, the regulator has no confidence that everything will run smoothly.

In addition, experts thought that the issue of privacy and security of storing financial information on the blockchain should be regulated.

The Royal Bank of Sweden also said that it will prepare for the second phase of testing e-krona with a focus on the use of such CBDC in retail, as well as a savings tool. Recall that earlier the head of the Bank for International Settlements explained why he recommends central banks around the world to consider launching their own digital assets (CBDC).

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