Swedish Central Bank Warns Against Scammers Issuing E-Krona

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Sweden’s central bank Riksbank has issued a warning against fraudulent individuals and firms offering the so-called e-Krona, the country’s purported electronic form of its fiat currency.

As clarified in a statement released January 7, the e-Krona project is still pending completion and therefore cannot be legitimately issued by anyone for the time being. However, as Riksbank indicated, multiple websites, social media accounts, and several firms have been found to be making false claims offering e-Kronas for purchase on behalf of the reserve bank, prompting Riksbank to refute the scam.

Initially announced in a report published by Riksbank back in September 2017, the proposal explores the viability of introducing a digital form of Sweden’s national fiat currency and its legal aspects.

Following its first announcement, Riksbank published a press release in October 2018 underscoring the massively decreasing use of the country’s national currency, as 2018 statistics show that roughly 13 percent of Swedish citizens currently use Kronor as tender, a marked decline from the 39 percent figure recorded in 2010.

The sharp decline of citizens using physical money coupled with the central bank’s move hinting at the possibility of introducing the sovereign cryptocurrency has led the majority to believe that Sweden is on its way to becoming the first cashless nation sooner than others would like.

As BBC indicated in a previous report published April 2018, Swedish citizens have raised a number of concerns over the potential challenges that the nation may possibly face, should the country shift towards becoming a cashless society, with a handful of citizens still remaining ambivalent over the move. Among the groups that have so far lobbied against the initiative includes the Swedish National Pensioners’ Organization, currently comprised of over 350,000 members.

Addressing concerns raised over the potential development of the e-Krona, Riksbank deputy governor Cecilia Skingsley explained:

“Although it may appear simple at first glance to issue e-krona, this is something entirely new for a central bank and there is no precedent to follow … The Riksbank will continue issuing banknotes and coins as long as there is demand for them in society. It is our statutory duty and we will of course continue to live up to it.”

In another report published in March 2018 by European news outlet The Local, Riksbank Governor Stefan Ingves posited that the development of the so-called e-Krona could most likely take roughly three to four years to be completed.