Communications of the ACM
Governments Are Testing Their Own Cryptocurrencies
Credit: Technology Review
The number of banknotes and coins in circulation in Sweden has fallen to its lowest level in three decades. Riksbank, Sweden's central bank, estimates that cash transactions made up only 15 percent of all retail transactions last year, down from 40 percent in 2010, thanks in large part to massively popular mobile payment services.
The situation has left Sweden's central bankers wondering: should the country introduce a purely digital form of government-backed money? And if so, should it use technology similar to that underlying Bitcoin?
Riksbank isn't the only central bank taking a serious look at blockchain, the technology that makes Bitcoin and other cryptocurrencies run. Government bankers across the world believe this has the potential to replace cash and make other payment systems more efficient.
From Technology Review
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