Swedish bankers against CBDC
Swedish banks are anxiously awaiting the launch of the digital crown. According to bankers, the central bank did not weigh the pros and cons well enough
This attitude of banks, in general, is quite expected. Despite the obvious advantages of national digital currencies, CBDCs are implemented in units of states. And while in test mode.
There is no proven practice to the smallest detail, pitfalls have not been eliminated. Therefore, many financial institutions have well-founded concerns. The lack of a clear response from financial regulators adds fuel to the fire.
How are things in Sweden
The country has developed electronic money circulation. Cash is practically non-existent. Therefore, according to the Central Bank of Sweden, it will be easy for Swedes to move to the digital crown.
In the fall of 2020, local regulator Riksbank launched an analysis to understand how CBDC can help the Swedish financial system. The study will be completed by November 2022.
Despite all the advantages, bankers are expressing concern. They are afraid that residents will withdraw money from their deposit accounts in order to transfer it to electronic kroon.
As a result, banks will be left without funding. It will be difficult to maintain liquidity. Banking institutions will take on more debt and become unprofitable.
Perhaps this problem can be solved if the Central Bank of Sweden will lend part of the e-kronor to other banks. This will become a support. But if the central bank holds the funds, then the situation will become a stalemate.
Rikard Erikson, advisor to the Swedish Bankers' Association, believes that Riksbank representatives did not think about this point. And this is not true, since Sweden is determined to move to the electronic krone.
We will monitor the development of the situation and inform you about cryptocurrency news.