DIGITALISATION Q2 2021 1
DIGITALISATION@HANDELSBANKEN CASH 2.0 Handelsbank
en is participating in a pilot project being run by the Riksbank, which aims to assess the possibilities of introducing a digital central bank currency called the e-krona, as a complement to cash. F or us, the project is a chance to participate in what may prove to be one of the first publicly available digital currencies controlled by a central bank anywhere in the world. Digital currency available to the general public is an option currently being looked at by numerous central banks. In this second phase, one aspect the Riksbank hopes to investigate is how well the e-krona’s technical platform works when integrated with the internal systems of a commercial bank. A digital krona has to be simple and user friendly, while also meeting strict security and performance requirements. In the test environment, simulated users must be able to keep e-krona in a digital wallet, and make payments, deposits and withdrawals via a mobile app. The user must also be able to make payments via card and “wearables”, such as smart watches. The technological solutions used in the pilot project are based on Distributed Ledger Technology (DLT), in the form of blockchain technology. This is based on a distribution model resembling the prevailing model with cash. Only the Riksbank can create e-krona, which is then distributed to the public via participants in the e-krona network, such as banks and payment service providers. The solution will be evaluated in a test environment. The pilot project is due to conclude at the end of Q4 2021. Why is Handelsbanken involved in the project, Benny Johansson, Head of Nordic payments? The Swedish Riksbank and the Nordic payments market are leaders in their fields, and we also aim to belong to this group. We want to learn about new technology and study new developments. We see this as a possibility to, together, evaluate the benefits and possibilities in terms of creating value for our customers, for the Bank, and for society in general. The e-krona should not be compared with, for example, Bitcoin – which has admittedly found its place in the market and risen in value, but is also associated with major risks. In addition, there remains doubts surrounding Bitcoin and other cryptocurrencies from a sustainability perspective. Many cryptocurrencies do not have the performance or reliability with regards to AML that is required of a means of payment. An e-krona has a stable value, potentially has the performance necessary without the environmental concerns associated with current public blockchains. 28 HANDELSBANKEN