Sweden’s Riksbank, the oldest government bank in the world, has completed a thorough review of different models proposing the adoption of a digital version of the Swedish krona (e-krona) as reported by Coindesk. The digital currency is being considered as a tool for Riksbank being a lender of last resort (LOLR) providing a secure means of payment and settlement and providing tools for preserving financial stability.
Interestingly, in the proposed models the bank would take a centralized approach and either control the distribution of the currency among private payment providers or take a more decentralized approach. Either way, it looks as though Riksbank is not ready to commit to a fully decentralized approach.
As Coindesk points out: “the centralized model with intermediaries closely resembles the current Swede financial infrastructure in that it is based on a partnership between the central bank and private service providers where Riksbank maintains its prominent role at the wholesale level of the payment market. However, in this example, the bank does not have an operational role in the distribution chain, as mentioned above.
The review also suggests that if the bank were to take a decentralized approach, it would need to create a thorough contingency plan “if one or several intermediaries were to fail, the bank would then need to be able to provide a large number of customers with e-krona payments.”