CB of Sweden awaits permission from the parliament and of the BIS (Bank of International Settlements) for creating of Innovation Center for studying cryptocurrency.
The request for placing BIS on the territory of the country was earlier published by the government. The goal of this initiative is to learn and understand the new important trends in the area of technologies, which is important for banks in our days. Also, it has to become a coordination center for workers of banks in the area of innovations.
One of the main center’s goals is the development of the government’s cryptocurrency. By the way, one month ago Central Bank has started the testing of its digital currency. That is the main reason why BIS must be placed there. Due to that chief of the CB think that their bank has a huge advantage in front of other competitors.
Center of the Bank’s innovations in the area of settlements is not just a private organization but the official branch of BIS. Moreover, workers of this organization are protected from political persecution of Swedish courts. In request of the CD of Sweden was said:
“Including that the CB has already passed a long way in the analysis of government’s cryptocurrency it can provide to BIS all their known information based on cooperation between government and private sectors, scientists and other central banks if BIS demands it”.
Many of other Swedish banks have been studying the concept of creation of their cryptocurrency, but CB has gone far away ahead from them. Central Bank started studying this area of technologies in 2017 because most of the population rapidly had started using wireless payments instead of traditional payments in cash.
For past years CB achieved huge progress so that in February they started testing their own official government’s cryptocurrency — digital crone. Bank of Sweden thinks that they are the only ones enough developed organization in the country which can become a Center of innovation so that they are keep asking parliament and BIS about that.
Center of innovations BIS
It is obvious that CI (Center of innovation) must be sponsored. CB requires parliament about 30 million crones per year during the next 5 years for their work in this area. This sum is approximately 50% of all CB’s dividends on BIS shares. (CB owns 3.2% of BIS’ shares).
However, people still want to get rid of cash-money in the advantage of bank cards, wireless payments, and cryptocurrencies regardless of will CI be in the country or will not.
Right now are pretty difficult times for both CB and BIS, what’s getting only worse due to peculiar “wars for CI” between banks inside of Sweden. At the beginning of this month, BIS had published an article about rapid changes in the system of payments in the world. Mostly the article was devoted to P2P-payments, token-shares and government’s cryptocurrencies.
In the report of BIS was mentioned that any kind of initiations of stablecoins is a real danger for the influence of CBS on monetary politics and financial stability. All researches of this organization have admitted the necessity of global reactions on Libra initiation. During the previous few months, all central banks raised questions about the country’s cryptocurrency. In January all six central banks in cooperation with BIS created a special group for researches of cryptocurrencies, and are planning to discuss a possibility of release of their own one in April.
