Riksbank, the Swedish central bank, which is at the forefront of Central Bank Digital Currency (CBDC) research, has applied to parliament for authorization to host one of the BIS Innovation Hubs, it announced last week. Current legislation does not allow the central bank to finance an international organization, hence the need to change the law. The funding will be a maximum of 30 Million Swedish Krone ($3 million) per year.
While Riksbank has not made a decision to go ahead with a CBDC, it recently signed a contract with Accenture for a trial for a CBDC targeted at the general public. In part because of the very low rate of cash usage in Sweden, the Bank has been exploring CBDCs for years, and in 2018 was forced to deny it had concrete plans to issue one.
In terms of CBDC tests, the BIS is also collaborating with six central banks to share research. These include Riksbank, as well as the Bank of England, which recently outlined its CBDC thoughts.
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