Exploring Sweden’s digital krona

Tieto Banktech participated in Riksbanken’s e-krona pilot to explore how existing retail payment infrastructure could interact with a future digital form of central bank money.

The e-krona pilot

As the use of cash declines and digital payments grow, Riksbanken has investigated whether Sweden could issue a digital complement to cash: the e-krona. The pilot explored how households, companies and other users could continue to make safe and efficient payments in central bank money in an increasingly digital society. Tieto Banktech participated in the pilot to explore how existing retail payment infrastructure could interact with an e-krona platform and network.

The context

Payments are becoming digital

Sweden has experienced a significant shift away from cash towards digital payments. Against this backdrop, Riksbanken began investigating whether it would be possible to issue a digital complement to cash.

A potential e-krona would be a digital form of state-issued money with the same value as the Swedish krona held in a bank account or as physical cash.

The initiative explores how access to central bank money could continue as payment behaviour becomes increasingly digital.

The pilot

Connecting existing infrastructure

A future e-krona would require supporting infrastructure that can work effectively within Sweden’s wider payment ecosystem.

As part of Riksbanken’s pilot, Tieto Banktech explored how existing retail payment infrastructure could interact with an e-krona platform and network.

The work brought Tieto Banktech’s experience in payment solutions and infrastructure for commercial and central banks into the exploration of a potential new form of central bank money.

Potential of a digital currency

Designed for a digital society

A thoughtfully designed central bank digital currency could complement cash while addressing changing payment behaviour and wider societal needs.

1

Greater inclusion

A digital complement to cash could help maintain access to central bank money as society increasingly moves towards digital payments.
2

Payment resilience

The e-krona pilot explores how safe and efficient payments in central bank money could continue in a digital environment.
3

Future innovation

A central bank digital currency could create opportunities for new payment services, depending on its eventual design and technology.

Our perspective

Our cooperation with the Swedish central bank on their e-krona pilot is but one example of our continuing and ever-increasing focus on the future of payments and money

Tieto Banktech

Looking ahead

Designing for inclusion

The potential value of a central bank digital currency extends beyond technology. Its design needs to consider how people and businesses can access and use central bank money in an increasingly digital society.

The original e-krona work highlighted inclusion, resilience and efficiency as important considerations. The chosen design and technology would ultimately determine how successfully a digital currency could complement cash and interact with the wider payment ecosystem.

Future of payments