Following the completion of the first stage of its virtual currency pilot initiative, Sveriges Riksbank has reportedly uncovered numerous serious problems needed fixing prior to a public roll-out for Stockholmers.
Specifically, Sweden’s central bank reportedly disclosed the initial results of its central bank digital currency, with trial running on a network based on R3’s Corda blockchain.
The Riksbank reportedly ran simulations on the primary aspects of a potential CBDC system, including liquidity supply through the Riksbank’s settlement system (RIX), and network members handling distribution tasks of the e-kronor. The central bank also simulated participants, end-users and payment instruments like mobile apps.
The Riksbank reportedly shared that the new CBDC tech reportedly requires additional investigation, where scalability seems to be becoming a serious setback.
“The solution tested in phase one of the e-krona pilot has met the performance requirements made in the public procurement. But this has taken place in a limited test environment and the new technology’s capacity to manage retail payments on a large scale needs to be investigated and tested further”.
The central bank further revealed a few obstacles in terms of privacy, highlighting that safeguarding needs to be provided to the data from an e-krona transaction, in order to stay in compliance with banking secrecy laws and steering clear from revealing personal information.
“The Riksbank is currently analysing to what extent the information stored in the transaction history can be regarded as information covered by banking secrecy and whether it comprises personal data”.
Mithra Sundberg, head of Riksbank’s e-krona pilot division in Stockholm, reportedly revealed that Sweden’s CBDC might need a new legal framework prior to official use.