Riksbank said CBDC technology still requires further research.
In a recent study, the Swedish central bank presented the first results of its central bank digital currency pilot on a network based on R3’s Corda blockchain.
What’s in the details?
Riksbank simulated the key features of a potential CBDC system, including liquidity supply through Riksbank’s payment system RIX and network members serving as e-kronor distributors. The central bank also simulated participants, end users, and payment tools such as mobile apps.
Riksbank said the new CBDC technology needs further research and scalability poses a major bottleneck.
The central bank also highlighted some privacy challenges, stressing that the information included in an e-krona transaction must be protected in order to comply with banking privacy laws and avoid disclosure of personal data.
“Riksbank is currently analyzing to what extent the information stored in the transaction history can be considered as banking confidential information and whether it contains personal data,” the bank said.
Mithra Sundberg, head of Riksbank’s e-krona piloting division in Stockholm, said Sweden could likely require a new legal framework before CBDC can be used. Given the scope of issues that need to be addressed before an e-krona can be seriously developed, Riksbank can continue blockchain pilots until 2026.
Riksbank has stated that it will extend its agreement with accounting giant Accenture as the technical supplier to continue e-krona testing. The focus of the second phase will include potential distributors of e-krona, CBDC performance in retail payments and storage methods. The new phase will also test offline e-krona functionality and integration with existing point of sale terminals.