Sweden: Financial Sector Assessment Program–Technical Note on Central Bank Digital Currency and Fintech

IMF Staff Country Reports, April 5, 2023

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Sweden: Financial Sector Assessment Program–Technical Note on Central Bank Digital Currency and Fintech

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Bibliographic details

• Published: April 5, 2023
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9798400236747.002

Systemic risks from potential issuance of CBDC

• The technical note assesses systemic risks stemming from the potential issuance of Central Bank Digital Currency (CBDC) in Sweden.
• It examines risks starting first with those arising from a domestic only e‑krona demand.
• Scenarios describing different risk manifestations are presented separately for exposition, but they are not mutually exclusive; demand for the e‑krona can take all the forms underpinning the different scenarios at the same time.

Riksbank analysis, commitments, and e‑krona design

• The Riksbank has been one of the pioneers in the analysis of CBDC.
• The Riksbank has recognized risks and has put in place a plan to mitigate them.
• The Riksbank committed to an e‑krona design that fulfils the “do no harm” principle; that is, support public policy objectives and do not impede the central banks’ ability to carry out its mandate.

Fintech sector significance and monitoring

• The note finds that systemic importance of the Fintech sector seems limited currently.
• The sector should be monitored closely, as it could grow fast; firms are complex and highly visible.
• Widening access to payment services could enhance competition and efficiency of the payment system.

Key themes and subject areas covered

• Bank deposits
• Central Bank digital currencies
• Commercial banks
• Digital financial services
• Financial institutions
• Financial services
• Fintech
• International organization
• Monetary policy
• Technology

Keywords and analytic headings used in the note

• B. Fintech landscape
• Bank deposits
• CBDC issue
• Central Bank digital currencies
• Commercial banks
• design feature
• Digital financial services
• e‑krona provision
• Europe
• Fintech
• Fintech firm
• Fintech sector

Content in this bundle

• Executive Summary
  • Executive Summary (Markdown version)
  • Executive Summary (PDF)