Bandwagon Effect - Sweden Begins Work on National Digital Currency

[crypto_winner]

https://bitconnect.co//upload/image/bit_coin_new/95674222391479366817_NvgZM9JecB.jpg
Bandwagon Effect - Sweden Begins Work on National Digital Currency
​As the world turns, as new technology comes to bear every year, every month, every day, if you are standing still, you are really falling behind. The days of major banking systems resting on their laurels and not innovating are at an end. The world’s banking industry is now fully mobilized into the future of digital currency, and ever-progressive Sweden is not about to be left behind, as they begin work on a potential future national digital currency.

The most likely place on Earth to see a fully digital economy
Sweden has been on the march against cash for many years now, and their regulations have led a drop in cash circulation of about 40% since 2009. The vast majority of financial transactions are done by debit card or other non-physical means. Officially, they are looking at making a decision on issuing what would be known as the e-krona within the next two years.

The diminished level of cash transactions in Sweden is no accident, and the qualifiers by regulators mean little. It is not a matter of if Sweden goes fully digital, economically, but when, which they mention as early as 2018. How the head of Sweden’s central bank speaks about it, it seems a foregone conclusion.

“This is as revolutionary as the paper note 300 years ago. What does it mean for monetary policy and financial stability? How do we design this: a rechargeable card, an app or another way?” Cecilia Skingsley, deputy governor at the Riksbank, told the Financial Times.“We really have no one to look at when it comes to how to design it and what are the possible consequence … It’s not an option for us not (to) do anything,” said Ms. Skingsley.

Sweden closed circulation of their 1000 krona note in 2013, and retail cash transactions dropped to 20% in 2014. This contrasts sharply with the United States, for example, where cash and electronic transactions are still close to 50/50, so the handwriting is on Sweden’s wall.

Many of the nations of the world are closing in on making a domestic digital currency, most likely modeling Bitcoin on a closed-loop, and using Bitcoin blockchain technology. The nations that have publicly discussed going this route in the not-to-distant future include China, Australia, the United States, the Ukraine, Great Britain and Canada, just to name a few. Smaller, more economically nimble nations like Tunisia and Senegal in Africa, are already there, and just waiting for the rest of the world to come aboard.

It is easy to believe that by the end of the decade, there will be double-digits of countries running a fully digital economy, and there could be dozens of them. Whether this is actually good for the citizens affected by these national banking initiatives is highly questionable, and will be a topic for another day.

[Fortify]

It seems a little foolish to put all your eggs in one basket as the saying goes. Sure it has efficiency and transparency savings but what happens if the power goes out. Cyber warfare also looks increasingly prevalent and financial operations are always going to be a number one target. It would be very foolish to rush into such an idea, even with bitcoins record so far

[clickerz]

Good for Sweden as they are coping up with technology very fast. But I think they will slowly implement this by phase for further study the impact and so conduct the risk analysis. I am happy that they are it, because they see the future.

[buwaytress]

One thinks that digital currency should be backed by something physical, but if fiat money isn't then why should this rule apply to digital?

In any case, we've seen recent examples of how national fiat can just crumble and collapse almost overnight through hyper-inflation. The most spectacular in my mind was the Zim dollar, and most recently the South Sudanese pound.

As highlighted, there's no real long-term precedent of a national digital currency to understand its implications and consequences so we should all back Sweden to start so we can learn from them.

[DimensionZ]

All the online payment processors like Paypal, Neteller, Skrill and others don't back their virtual funds with anything either. They just operate on the notion that their digital numbers in their virtual ledgers have value. Bitcoin is not backed by anything either. It's the belief that it has value which is driving the price up or down respectively. More belief=higher price, less belief= lower price. No backing of any sort.

[Fortify]

All the online payment processors like Paypal, Neteller, Skrill and others don't back their virtual funds with anything either. They just operate on the notion that their digital numbers in their virtual ledgers have value. Bitcoin is not backed by anything either. It's the belief that it has value which is driving the price up or down respectively. More belief=higher price, less belief= lower price. No backing of any sort.

I'm not quite sure this is true. All of those payment providers work essentially like a bank, now you could question whether the fiat money behind them is safe but their "virtual ledgers" as you call them are backed by deposits from customers. Every single penny/cent is traceable back to the source of funding and has to be for their whole operation to be trusted. It's not like people login and accidently find an extra zero on their balance, apart from a few extreme accidents.

To the other poster - There were many reasons why the Zimbabwe currency collapsed but it was primarily due to the racist policies of Robert Mugabe that ruined it's value

[odolvlobo]

I think that many people don't realize that every currency today is a "digital" currency. The difference is that the new digital currency will have no paper or coin equivalents.

Another important difference might be that the ledger will be maintained by the government, rather than the banks.

Governments and their finance industry puppets consider this to be a good thing. I disagree because it will allow to state to monitor and control each person's spending and finances, and it will lead to financial subjugation of the population by a ruling class.

[pitham1]

It seems a little foolish to put all your eggs in one basket as the saying goes. Sure it has efficiency and transparency savings but what happens if the power goes out. Cyber warfare also looks increasingly prevalent and financial operations are always going to be a number one target. It would be very foolish to rush into such an idea, even with bitcoins record so far

Most economies today are vulnerable to cyber warfare, even without a national digital currency. Just think of all the problems this could avoid - tax evasion, counterfeiting, etc.

[LLec]

It seems a little foolish to put all your eggs in one basket as the saying goes. Sure it has efficiency and transparency savings but what happens if the power goes out. Cyber warfare also looks increasingly prevalent and financial operations are always going to be a number one target. It would be very foolish to rush into such an idea, even with bitcoins record so far

Most economies today are vulnerable to cyber warfare, even without a national digital currency. Just think of all the problems this could avoid - tax evasion, counterfeiting, etc.

This is exactly how the forex people using fiat viewed bitcoin will do to their economy so they feared it. But now they see that is not so and they can also benefit from using it.

[Shady]

Looks like a good idea... Although some cryptocurrencies are used primarily in specific regions in the world this may already be accomplished by an alt-coin indirectly anyways. It's come to my conclusion that there's still much, much more to come into reality because of the gold rush spurring in both the virtual and digital currency economies so this isn't the end running through and only the beginning.

[Xester]

Sweden may possibly turn into digital currency but they will not use bitcoin as their official currency. I believe they will make their own currency or altcoin that they will be using in their nation. A digital currency controlled by the government,monitored and regulated.
But I also hope I am not correct and they will use bitcoin.

[IIOII]

I thought, the country coin concept has been proven to be a failure. But that seems to apply only to the Crypto scene. Governments are still within a learning process it seems.

National Crypto's are an Oxymoron. They eliminate all advantages of cryptocurrency. You don't need blockchain tech for a centralized currency. All you need is a new PayPal version, which is simply less complex and consumes less resources.

[ikydesu]

Sweden may possibly turn into digital currency but they will not use bitcoin as their official currency. I believe they will make their own currency or altcoin that they will be using in their nation. A digital currency controlled by the government,monitored and regulated.
But I also hope I am not correct and they will use bitcoin.

Unfortunately you right, the gevernment always wants to take control, they will create their digital currency which have similar technology like blockchain, but it's surely centralized. As far i see sweden take a movement to learn blockchain technology, their news related to blockchain has ben spread.