Sweden fears that the digital e-krona could undermine financial stability
Despite the fact that an e-krona pilot project has already taken place in Sweden, some doubts are emerging on the part of bankers.
According to information released by Reuters today, some Swedish bankers are currently concerned that the e-krona could disrupt the country’s financial stability.
Bankers began to engage in a heated debate after the e-krona pilot program ended in December and it was time for a review. As we informed you, the pilot project was initiated by the Riksbank, Sweden’s central bank, which wants to make payments via e-krona as easy as sending text messages.
At present, however, there is a conflict of opinion and bankers from Stockholm claim that such payments can radically change the dynamics of the banking system.
One of the biggest doubters is Masih Yazdi, chief financial officer of Sweden’s largest corporate bank SEB, who thinks that if people move their money from deposit accounts to the e-krona, this situation could deprive banks of funding and the necessary liquidity.
Masih Yazdi also said:
If you have a bank account but you can – at the click of a button – move your money to the central bank … that could risk instability in the system,
However, Riksbank Deputy Governor Cecilia Skingsley rejects such fears, arguing that people can already now leave the banking system, for example by buying treasury bills.
We already have to face the risks that there are cyber runs out of the banking system. I don’t think a CBDC will fundamentally change that to a worse situation,Skingsley told Reuters in November
Riksbank’s interest in the e-krona was also questioned by Rickard Eriksson, an advisor for the Swedish Bankers Association, who is concerned that the central bank has still not made it clear what is going to happen with the digital money the bank will collect.
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