The Swedish central bank has just set up a special commission to examine national legislation in order to verify what constitutes legal tender in that country.
The new committee will probably give a definitive answer on the definition of a legal tender. The reason for the actions taken is to be plans to completely give up cash for electronic payments.
A revolution in payments
The Swedish central bank has already issued a statement that clarifies its position and at the same time stresses the importance of precisely defining the legal tender.
For 350 years, the Swedish society was based on Riksbank, its central bank, which provided the public with various forms of the national currency, the Swedish crown. Money issued by Riksbank is a legal tender since the 1850s. Today, however, the use of cash in Sweden has fallen sharply. The situation is already so drastic that companies in Sweden are already refusing to accept cash as a form of payment. The importance of payment applications such as Swish (used by 6.3 million people) and bank cards is growing in the country.
The use of digital payments has increased by 13% in one year, according to the annual World Payments Report.
Ready for E-Korona?
Due to the fact that Sweden seems to be increasingly switching from cash payments to electronic payments, it would be wise to consider whether the country should issue its own cryptocurrency. The Swedish central bank is already thinking about the E-Crown project, which would become a reality in about two years. The topic already warms up the minds of economists.
One of them, James Pomeroy, has already identified the range of possible digital currency and the way it is used. E-Korona will have to be used for small purchases (micropayments), but also available and useful for companies and financial institutions that deal in large sums. Although the subject is still shrouded in a mystery mistake, one theory says that the e-currency ” will be stored on accounts in a centralized database. ” Thus, you can no longer talk about cryptocurrency, but about a regular digital currency.