Virtual currencies have long since ceased to be a curiosity to become a necessity. Any company or organization that wants to successfully integrate the trends of the 21st century must have knowledge about Blockchain and cryptocurrencies. But, for governments like Sweden’s, keeping up to date in this sector seems less and less an option and an obligation.
Governments in Blockchain
The interconnection of the world economy through the international financial system has been a fundamental element for the unprecedented well-being created in the last century. However, this does not mean that the international economy is perfect. On the contrary, it has many defects that can be fixed thanks to the action of technology.
And more specifically, Blockchain technology can be essential to improve aspects of international finance. Especially, the gap between the enormous utility of commercial banks, and their difficulty in reaching the entire population. Leaving huge segments of it unbanked.
To this would be added the existing complexity for the execution of international money transfers, with high commissions and waiting times. As well as the competition that virtual currencies have put on fiat money. By creating an alternative beyond government control.
This last challenge was very clear from the announcement, by Facebook, of the future launch of its own virtual currency in Blockchain, Libra. A currency with the potential to represent a challenge for the governments of the world. Due to the financial and technological muscle that would support Facebook in this project.
The virtual currency of Sweden
It is because of this challenge that multiple governments around the world would be developing their own government virtual currencies. The best known case being the virtual yen in China. But without being the only one, because other countries like Sweden would already be testing their own virtual currencies.
Thus, the Nordic country has announced the start of testing of the e-Krona, a virtual version of its official currency. A test period that will last 1 year, and during which it is planned to solve the potential problems that would arise with this currency, then being released to the public.
Sweden’s plan is to get its government virtual currency to make conventional payments for goods and services. As well as financial activities of all kinds in the country. With what this country would take the lead in the government’s race for the development of its own virtual currencies in Blockchain. What makes this our Data of the Day here in CriptoTendencia.
International Studies student, interested in economics and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and cryptocurrencies in particular.