Swedish banks have expressed apprehension over the central bank’s proposed e-krona digital currency and how it could affect their industry.
With Sweden the nation that uses cash the least globally, the Riksbank has been considering taking digital payments using the e-krona mainstream. Late last year, Sweden’s financial markets minister, Per Bolund, said the Riksbank finance committee had launched a review into the prospects of switching the country to the digital currency, a study that will be completed in November 2022.
But bankers in the nation say this would fundamentally change how the banking system works, according to a Reuters report Tuesday.
One concern expressed is that if people move their money out of deposit accounts and to the e-krona, this could leave banks short of funding and leave them to rely on wholesale markets for liquidity, said the report.
Masih Yazdi, CFO of corporate bank SEB, said this would risk financial stability by making
