Stefan Ingves, the Governor of the Swedish Central Bank, has announced a 6-step plan, which outlines the main requirements before the country can officially launch a national digital coin.
According to him, it is important that the Central Bank works on completing the checklist before the currency is launched.
Digital currency checklist
The six main points of the outline the main requirements for the digital currency to be used all over the country, and globally. Not only that, but the Governor also outlined important security issues that have to be taken care of, before the coin can be officially launched.
The outline points out to these 6 important factors:
- 24-hour operability – the currency should be available always and everywhere
- Cross-border functionality – the currency should serve the purpose of an international payment method
- Regulatory updates – the legislation of the country should be updated so that it reflects the adoption of a digital currency
- Bank-issued – while the Swedish Central Bank will oversee the currency, other banks in the country will be responsible for the issuance of the currency
- Anti-money laundering measures – for the Governor, one of the most important factors to be in place are anti-money laundering laws and protections like digital identification
- Cash remains – according to the Governor, the introduction of digital currency does not mean that cash will not be present in the economy anymore. In fact, Mr. Ingves pointed out that it is important to have a backup plan in case the new currency malfunctions.
This initial regulatory framework is a big step towards the incorporation of digital payment systems, and if Sweden succeeds in adopting them, it might become a leader in digital payments. Hopefully, this official addresses from bank representatives will introduce a push towards digital currencies globally.