Sweden’s Riksbank,the first major central bank in the world, to build its own digital money as the value of fiat cash drops. The importance of cash in circulation in Sweden where the first banknotes were introduced more than 300 years ago has drop to around 1.5 percent of gross domestic product (GDP) from almost 10 percent of GDP. Subsidiaries of Swedish banks are stirring away from cash handling while cash machines are limited in much of the country. Few chains have stopped accepting cash payments as a whole.
Cryptocurrency services like payment cards, allowing consumers to make online transactions across borders immediately. It has been growing famously as more people use the internet to purchase. Deputy Governor Cecilia Skingsley said, |Sweden is on the forefront of this. We don’t have any other countries to copy, since there is no other country that is so rapidly stopping using notes and coins as Sweden is”. There is a large number of people who for various reasons cannot, do not want to have or do not get access to the commercial banks’ payment methods. Though experts say digital currencies like Bitcoin are not broadly accepted, can easily be used for money laundering and are not regulated, meaning it they are more perilous to apply. Riksbank would need to look at a number of issues, including technical, legal, practical and security matters and would decide on an e-currency within couple years.