Finance & Economics

Riksbank tested blockchain-based solution for e-krona

The solution based on blockchain technology is also new and needs further investigation

Riksbank e-krona

Riksbank tested blockchain-based solution for e-krona. Source: pexels.com

Riksbank has tested a solution based on Distributed Ledger Technology and a blockchain technology where the e-kronor take the form of tokens.

The main purpose of the pilot project is for the Riksbank to increase its knowledge of what form a central bank digital currency might take. It is also showing in a test environment how this e-krona could be used by the general public.

Nevertheless, there is no decision on issuing an e-krona, on how an e-krona might be designed, or what technology might be used yet.

The technology provides new possibilities but requires further investigation

The technology gives the possibility to create a uniquely identifiable e-kronor. But still, it is untried when it comes to processing retail payments in the magnitude and with the safety level required by a central bank digital currency.

Different forms of storage of tokens and keys provide different properties

The way the money is stored should ultimately be determined by which functions are given priority in the e-krona. One important question is whether the e-krona will function even without access to the internet, what is known as off-line functionality, a possibility the project has not yet tested.

A parallel network makes the payment system more robust

A solution based on blockchain technology and tokens means that one creates an infrastructure that to a great extent functions parallel to today’s payment infrastructure.

We’ve reported that the Indian crypto exchange launched the NFT marketplace.

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