Crypto Mining Firm Hut 8 Seeks $396M Raise in Latest Offering

0
3


Bloomberg

Swedish Central Bank Reveals First Study of Digital Currency

(Bloomberg) — The Swedes are learning that their once pioneering vision for a central bank digital currency might take a lot longer to enact than initially thought.The Riksbank just published the results of the first phase of a pilot project into what is essentially the most advanced exploration of a post-cash era to be undertaken by a major, western economy. It says the rapid pace at which cash is disappearing presents “potential problems” that a digital currency controlled by a central bank can address.The task is huge and Sweden’s central bank, the world’s oldest, keeps pushing back its timeline. After once suggesting it might be ready to move ahead with an e-krona by 2018, the Riksbank now says the current pilot project won’t be completed until early next year, and has even given itself room to continue trying until the end of 2026.Other central bankers have openly dismissed the notion that there’s any reward to be gained from being a first-mover in the field of digital currencies. Federal Reserve Chairman Jerome Powell recently said the U.S. would rather be right than first.“In most economies it will take time. And especially if lawmakers need to weigh in,” Johanna Jeansson of Bloomberg Economics.GLOBAL INSIGHT: Carpe Diem – Central Banks in Digital Future Mithra Sundberg, who heads the Riksbank unit that’s running the project from Stockholm, suggests it’s important not to settle on the technology before figuring out exactly what the digital currency needs to do. That’s as the Riksbank makes clear it’s not replacing cash, and that whatever it ends up creating — if it moves ahead — will probably require a new legal framework before it can be used.Meanwhile, cash in the form of bank notes and coins is slowly but surely petering out in the largest Nordic economy. Last year, Swedes used cash less often than the citizens of seven other “mature” markets, as a percentage of total transactions, according to the McKinsey Global Payments Report.But not everyone sees cashlessness as a trigger for embarking on a digital currency project. In neighboring Norway, another virtually cashless society, the central bank says there’s “no acute need” to introduce a digital currency.What Bloomberg Economics Says…“The motivation for introducing a central bank digital currency may change as policy makers explore the issue. Simply introducing a complement to cash for retail transactions may not make much of a difference in the economy. Using wholesale CBDCs in cross-border transactions has the potential to raise efficiency. Employing new digital tools for policy purposes could really alter the macroeconomic playing field. The bigger the step, the more thought it’s likely to require. Expect that to take time.”– Johanna Jeansson, Scandinavia economistSundberg says Sweden’s e-krona pilot project hasn’t yet explored the monetary policy ramifications…



Read More:Crypto Mining Firm Hut 8 Seeks $396M Raise in Latest Offering

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x