The Bank of Sweden has announced that it has completed the first phase of the National Digital Currency Test (CBDC). However, the bank believes that this technology still needs more research.
to the Report The Swedish central bank, Coin Telegraph, has identified some important issues that need to be addressed before the people of this country can make purchases with e-krona after the completion of the first phase of their national digital currency pilot project.
In a recent study, the bank published the first results of its national digital currency test conducted on R3’s Corda blockchain network.
In the first phase of the experiment, the Bank of Sweden simulated the main dimensions of the potential national digital currency system. Some of these dimensions include providing liquidity through the bank’s settlement system, the RIX payment system, and network members as crone electronic distributors. The bank also simulated contributors, end users and payment tools such as mobile software.
The Bank of Sweden said that the new technology of the national digital currency needs further research and scalability is a major weakness and challenge in this direction.
The bank’s report states:
The solution tested in the first phase of Electronic Crown had the necessary functional requirements in public procurement. But this implementation has taken place in a limited experimental environment, and the capacity of this new technology to manage large-scale micropayments needs to be further tested.
The central bank also pointed to some privacy challenges and stressed that the information contained in a cron electronic transaction must be protected in order to comply with banking secrecy rules and prevent the disclosure of personal information.
The bank stated in this regard:
The Bank of Sweden is currently investigating the extent to which information stored at the date of the transaction can be considered as banking confidentiality information and whether this information is personal data.
Sweden’s national digital currency may need a new legal framework before launching, said Mithra Sundberg, head of the Swedish Central Bank’s electronic testing department in Stockholm.
Given the range of issues that need to be addressed before the serious development of Krone Electronics, the Bank of Sweden’s Blockchain tests may continue until 2026.
The bank has stated that it will renew its agreement with accounting giant Accenture as the technical supplier to continue the electronic cron test. The main phases of the second phase will include potential distributors of KRE, the performance of the national digital currency in micropayments, as well as storage methods.
The new phase will also test Krone Electronics’ offline performance and integration with sales terminals.
Sweden was one of the first countries in the world to launch a national digital currency, and in late 2019 announced the launch of a pilot platform for Krone Electronics.