Sweden’s central bank, Riksbank, has released its third report on the potential for a central bank digital currency (CBDC), with the focus of this phase being a collaborative model for retail and conditional payments. In its report, the Riksbank highlighted governance as a key question for collaboration, with options divided into three levels. The lowest level posed a risk of participants having too much freedom, which may make it difficult for the public to understand what an e-krona is. Meanwhile, the highest level involves a Riksbank-operated app, which would be standardised and common for all participants.
The report discussed a successful trial of a conditional payment for the purchase of a car, which raised privacy questions due to the extra information required to complete the transaction. The Riksbank pointed out that transparency in the system could impact bank secrecy and could help uncover bad behaviour by service providers. The e-krona is seen as a potential solution to the reduction in the Riksbank’s role on the payment market.