After completing the first phase of the digital currency pilot project, Sveriges Riksbank identified some critical issues that must be addressed before Stockholm residents can purchase coffee and cinnamon rolls with e-kronor.

In a recent study, the Riksbank presented the first results of a pilot project for a central bank digital currency on a network based on the R3 Corda blockchain.

Riksbank has modeled key aspects of the potential CBDC system, including the provision of liquidity through the settlement system for Riksbank, RIX, and network members who act as distributors of e-krone. The central bank has also modeled participants, end users, and payment tools such as mobile apps.

Riksbank said the new CBDC technology requires further study and scalability is the main bottleneck.

“The solution tested in Phase 1 by the pilot e-krona meets the performance requirements set forth in public procurement. But this was happening in a limited testing environment, and the ability of the new technology to handle retail payments on a large scale required further study and testing,” he said. the report.

The central bank also drew attention to some privacy concerns and stressed the need to protect the information contained in the electronic krona transaction in order to maintain banking secrecy laws and avoid disclosure of personal information.

“Riksbank is currently analyzing whether the information stored in the transaction log can be considered bank secrecy information and whether it consists of personal data,” the bank said.

Mitra Sundberg, head of pilot Riksbank e-krona in Stockholm, said the CBDC will likely require a new law to be passed before it can be used. Given the scale of the problems that must be solved before e-krone can develop in earnest, Riksbank may continue piloting blockchain projects until 2026.

Riksbank said it would renew its agreement with accounting giant Accenture as a technology provider to continue testing the e-krona. The second phase will focus on potential electronic crown distributors, CBDC metrics for retail payments, and storage methods. The new phase will also test standalone e-Crown functionality and its integration with existing POS.

As previously reported, Sweden became one of the first CBDC leaders in the world and announced a test platform for e-krona in late 2019.

Source: CoinTelegraph

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