Sweden’s central bank said it would work with commercial lender Svenska Handelsbanken AB on the development of CBDC. Svenska Handelsbanken AB is responsible for corporate transactions, trade, and consumer banking services.
On the bank’s official website, employees confirmed the news today. According to the Swedish central bank, the collaborative testing awith Handelsbanken will focus on how quickly payments in the digital krona equivalent will be handled.
Involving third-party players in the Riksbank technical solution, the e-krona project advances from concept to simulation in a test environment. The central bank believes that only by conducting regular “stress tests” will they be able to determine how fruitful the krona’s integration into the existing banking system will be and how many players will be able to join the technical platform.
In reality, the digital crown has emerged as one of the forerunners in developing national tokens in Europe. They are currently second only to China in terms of how they plan to integrate the token into everyday life is being implemented. Sweden and China are already exploring the viability of national cryptocurrencies, while the rest are aiming to do so soon.
According to Sweden’s Governor, the development of the digital crown can be completed in five years. The country’s central bank plans to enlist even more commercial companies in the system to speed up the process. Still, only Handelsbanken and the Finnish IT firm TietoEVRY have formally acknowledged participation so far.