Sweden Begins Planning Transition From Cash To Digital Currency
by Tyler Durden
ZeroHedge.com
Nov 17, 2016
In the aftermath of the ECB halting production of the €500 banknote, and more recently, India phasing out its highest denomination bills instantly eliminating some 86% of the cash in circulation as increasingly more countries make a move toward a cash-free society, another central bank – the world’s oldest – has started planning its own transition away from paper cash.
Sweden’s Riksbank, which was the first central bank in the world to issue paper currency in the 1660s, is preparing to become a monetary pioneer yet again, and has launched a project to examine what a central bank-backed digital currency would look like and what challenges it would pose.
As Reuters writes, the RIksbank could become the first major central bank in the world to create its own virtual money as the use of cash declines, Deputy Governor Cecilia Skingsley said on Wednesday.
The central bank hopes to take a decision on whether to start issuing what it calls an ekrona in the next two years. What is perhaps more notable is that should the central bank launch a digital currency few would notice; the value of cash in circulation in Sweden has fallen to around 1.5% of GDP from 10% of GDP in 1950.
The Rest…HERE
