Posted 8 months ago | by @devadmin
Sweden the country most known for its cashless society is exploring launching a potential Central Bank Digital Currency (CBDC.)
Sweden’s government will start exploring the utility of having the country move to a digital currency, Bloomberg reported.
Per Bolund, Sweden’s financial markets minister said a review launched for the evaluation of an E-Korona (not to be confused with the pandemic) on Friday. The review for the CBDC is expected to be concluded by the end of November in 2022. Anna Kinberg Batra, a former chairwoman of the Riksbank’s finance council, will lead the analysis into the central bank-backed digital currency.
It’s worth mentioning that Sweden’s central bank is already running a pilot digital currency project with Accenture Plc to introduce an electronic krona based on the same blockchain technology that underlies digital currencies like Bitcoin. So Sweden may be further along with development than they are publicly stating.
The Riksbank governor Governor Stefan Ingves called upon the Swedish Parliament in October to introduce the E-korona. Further, adding that it was E-korona or bust, Coindesk reported.
“There shall be digital state money as legal tender, an e-krona, issued by the Riksbank,” Ingves wrote in an economic note.
Bolund said that “it’s crucial that the digitalized payments market functions safely, and that it’s available to everybody.”
“Depending on how a digital currency is designed and which technologies are used, it can have large consequences for the entire financial system,” he said.
The Riksbank estimated in October that Sweden’s cash usage dropped to its lowest level ever, as the pandemic accelerates the shift away from banknotes and coins is inevitable. Less than 10% of all payments are made with cash in Sweden, according to the bank’s research.
The Bank for International Settlements (BIS) estimated back in 2018 that Sweden is the world’s most cashless society, measured by usage.
Last year, Max Keiser of the Keiser Report told Kitco News that China was backing its new digital Yuan with gold.
“[China] is rolling out a cryptocurrency, a lot of the details have not been divulged. I can tell you that the cryptocurrency that China’s rolling out will be backed by gold. It’s a two-pronged announcement. Number one, China’s got 20,000 tonnes of gold, number two, we’re rolling out a crypto coin backed by gold, and the dollar is toast,” Keiser told Kitco News.
Whether or not that’s the case, we don’t know. But this author also had his own source from the BIS saying much of the same for years, in which I wrote up two articles explaining the shift from the West as the world reserve currency. Those articles were entitled: “A Shift Of Power: Russia and China Finalize Moves To Replace U.S. Dollar As World Reserve Currency” and “China Finalizes Moves On Oil Markets To Overthrow U.S. Petro-Dollar Dominance As World Reserve Currency.”
Both articles detail numerous financial moves that China has taken in the past 10 years. One of which was buying up gold from the U.S. as a WikiLeaks cable titled “China increases its gold reserves in order to kill two birds with one stone” details.
China again began stockpiling gold in 2013, when they bought JPMorgan’s building that previously housed its gold. The IMF and United Nations have even expressed agreement that it’s time to replace the U.S. dollar as the world reserve currency with what’s known as SDRs or special drawing rights . Then the Asian Infrastructure Investment Bank (AIIB) was planned between 2010-2012, and was fully operational by 2016.
“China has been pushing for the SDR to become more widely used for some time, as a way to challenge the dominance of the dollar without pushing the renminbi as a direct competitor,” Julian Evans-Pritchard, a China economist at Capital Economics in Singapore, told Reuters.
Although currently it is not known if China’s digital Yuan is backed by gold, it wouldn’t be at all surprising. China opened up its own gold market in 2016, an entirely separate system than the COMEX gold futures market in New York and the Over-the-Counter (OTC) trades cleared through the London Bullion Market. China and Russia have both been working to undermine the West and the U.S. dollar since China called for a new world reserve currency as early as 2009.
Now, the disruptive fiat digital Yuan is here and it could help China achieve their goal of replacing the U.S. dollar as the world’s reserve currency amid a growing economic collapse happening in the U.S. due to the pandemic lockdown and other outlying factors like propping the economy up on fraud by deregulating banks and entities.
In the words of Fortune magazine, “digitization of currency will be perhaps the most important factor in an economy’s success,” and “China is winning the digital currency battle by a long shot—and if the U.S. doesn’t catch up soon, it’s going to lose the war.” The race is now on for what country will be next to implement a digital currency and more so which central bank will be the first to digitize a sovereign fiat-based currency.
China is also not the only country developing a digital currency, the UK is developing one as well, CoinTelegraph reported. Besides the UK, the U.S., Russia, and India to name a few countries, are also considering launching their own CBDC, or fiat cryptocurrency. BIS states that the future is now inevitable in a PDF from January of this year compiled of research of more than 50 Central Banks polled entitled: “Impending arrival – a sequel to the survey on central bank digital currency.”
The poll indicates that as many as “80% are engaging in some sort of work with developing digital fiat currencies, while 40% have progressed from conceptual research to experiments or proofs-of-concept; and another 10% have developed pilot projects.”
A more recent white paper from BIS published in August titled: “Rise of the central bank digital currencies: drivers, approaches and technologies” expands on the development stages of countries each testing or developing their own CBDCs.
In particular, the report focuses on — China’s Digital Currency Electronic Payments (DC/EP), Sweden’s e-Krona, and the Bank of Canada’s CBDC contingency plan.
For more information on where each country is at when it comes to the development of digital currencies, you can see this recent post by the Hongkong-based South China Morning Post which delves into the gritty details.
The main question we must ask ourselves is this. Do we want world governments having that much power and Orwellian control over our finances, with the ability to not only see purchases but seize wallets if you dissent and decide what you can and can’t purchase? I think the obvious blaring answer for most of us is, no. In other words, buy Bitcoin.
Bitcoin is currently trading at [FIAT: $18,428.75] UP +2.7% in the last 24 hours according to Coingecko at the time of this report.