Nordic countries are considered crypto-friendly. Not only do cryptocurrencies have a lot of fans in this region, but many of them have or use cryptocoins, particularly Bitcoin. Sweden decided to take the whole thing one step forward with its own cryptocurrency. Learn more about Swedish efforts to dive into the crypto world further in this post.
Cryptocurrency in Sweden
First, we’re going to address cryptocurrency in Sweden in general. Considering Swedes are tech enthusiasts, it’s not such a surprise they showed interest in the whole cryptocurrency phenomenon. Like in many other countries, cryptocurrencies are used more and more often in Sweden to make payments online. Many online casinos, e-commerce stores, and other services in Sweden accept Bitcoin and other popular cryptocurrencies.
When it comes to legislation, cryptocurrencies are considered legal in Sweden, and its use is accepted by authorities. However, like in many other nations, there is no specific regulatory body or law that focuses on cryptos only. The tax legislation in this Scandinavian country doesn’t consider crypto as currency or cash. Instead, they are viewed more like individual transactions involving assets.
Easy access to the internet, continuous tech developments, and different devices we can use to go online make paying for goods and services quick and simple. It has become easy to buy whatever we need. Credit cards and services such as PayPal or e-wallets and Google Pay allow us to pay with a simple tap on the screen. The need for cash is not as significant as it used to be, especially in Sweden.
Sweden is one of the nations where cash and coins aren’t used anymore. The country and most citizens are dedicated to the idea of a cashless society. What’s more, Sweden is leading the race to become the world’s first almost cashless society. Many Swedes put more trust in digital payments via credit/debit cards and mobile apps than in cash. The cash represents 1% of the Gross Domestic Product (GDP), and the number of cash withdrawals declines each year.
So it was only a matter of time Sweden will move to adopt digital assets such as cryptocurrencies or work to develop their own. The move to work on Swedish cryptocurrency seems logical. More about that below!
Sweden is working on its own cryptocurrency.
In February 2020, Sweden’s central bank, Riksbank, announced it had begun testing e-krona, a digital version of the country’s currency. This brings the least cash dependant country in the world one step closer to the proper release of CBDC (central bank digital currency). In a nutshell, CBDC is traditional money in a digital form, and Sweden is only a second country, after the Bahamas, to unveil working national cryptocurrency or announce the project to create one. Many countries plan to work on digital assets of their own, but only Bahamas and Sweden have made big steps toward the realization of those plans.
The project is planned to be in operation until February 2021. The highly anticipated digital currency is being developed by consulting firm Accenture.
At this point, it’s unclear when we can expect the launch of e-krona for public use. The main premise behind this project is this blockchain-powered currency would be able to drive banking activities and conventional payments throughout Sweden. The Swedish central bank explains that making payments in e-krona will be as easy as sending a text. Instead of using a credit card and fiat currency to pay for goods and services, everyday transactions would move entirely on blockchain once (and if) e-krona becomes available to the public.
Although everyone is interested in e-krona, especially Swedes, little is known about specifics. Other than the fact, e-krona will be easy to use and is developed to simplify the way we make payments and spend our money; not much has been elaborated. The design and technology behind e-krona are still not revealed to the public.
Sweden is the least cash-dependent country in the world, so it seems obvious they would start working on their cryptocurrency. E-krona, digital version of Swedish money, is being developed, but its release to the public and specifications aren’t revealed just yet. However, e-krona is meant to move everyday transactions to the blockchain and ensure that making payments is as easy as sending a text.