Yesterday Sweden’s Riksbank published a paper that concludes that if DLT tokens are used for a central bank digital currency (CBDC), they have no greater ability to provide cash-like features than an account-based CBDC. Late last week, the central bank also announced it was extending its tests with Accenture of its e-krona technical solution by a year to the end of February 2022. The country has not yet decided whether to issue a CBDC.
Riksbank considers cash-like features to be a lack of traceability and the ability to operate when offline.
One of the primary design choices for a CBDC is whether it should be account-based or token-based. While tokens are perceived to present advantages for these two features, Riksbank disagrees.
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