European country wants to use digital currency to replace cash
The Swedish government wants to abandon the use of cash in the country and start developing a currency similar to the national currency - the krona, but digital, Bloomberg reported.
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| Many European countries have initiatives to develop digital currencies. Illustration |
The European country's Finance Minister Per Bolund said that a large-scale experiment has been launched, which will end in November 2022. The result of this experiment will be the emergence of a digital krona.
This is not the first time Swedish authorities have looked into developing a digital currency. The country’s central bank, which is formally independent of the government, is also conducting a similar experiment with international consulting firm Accenture.
In 2020, cash use in Sweden fell to a historic low. It accounted for less than 10 percent of all payments in the country. As a share of GDP, this is currently the lowest figure in the world.
Previously, financial authorities of several countries, including France, Russia and the European Union, have initiated the development of a national digital currency. The head of the European Central Bank Christine Lagarde said that the digital euro could help develop the financial system and serve as a reliable means of payment in case of natural disasters or catastrophes.
To date, there is no unified definition of digital currency in the world. Most countries, including Russia, consider it an official means of payment, equivalent to cashless payments using electronic wallets.
