The “krona” is Sweden’s official currency. Krona translates to “crown” in English, which is the reason why the currency is sometimes referred to as the Swedish crown. The Swedish currency was the ninth-most traded currency in the world, as recorded in April 2016. Much like the krona, Bitcoin is the most well-known cryptocurrency traded today, with investors from across the globe using platforms like bit-trader.io to fast-track their wealth status and increase their quality of life. With both commerce and non-profits moving toward replacing conventional money, it’s worth considering how to start investing in Bitcoin.
Swedish consumers have been paying less with cash over recent years. This has prompted the Swedish central bank to test its cryptocurrency, the “e-krona”, in a pilot project. It was the first time in the world that a national bank has embarked on cryptocurrency attempts. According to the central bank in Sweden, the “e-krona” can replace coins and banknotes, and ensure that the bank can prosper in a society that is becoming increasingly cashless. The Riksbank saw potential challenges with cash margins and, therefore, initiated the pilot project to propose a technical solution for digital central bank money, an ‘e-krona’ that can function as a supplement to cash.
The pilot project was launched in collaboration with the consulting company Accenture, which specializes in digital solutions. The technical solution for the project was based on blockchain technology, which is well known with bitcoin, among other cryptocurrencies. It will essentially be evaluated in a test environment where it will show how the public can use the ‘e-krona’. The testing environment was intended to simulate how users can make payments, store the ‘e-krona’ in a digital wallet, and insert and withdraw via a mobile app.
Even with contactless Dankort and MobilePay, Danmarks National bank currently has no plans for a similar digital currency experiment in Denmark. However, Danmarks National bank keeps track of what experiences Sweden’s Riksbank has drawn from the pilot project. In a 2017 report published by Danmarks National bank, they talked about how Digital kroner already exists in the form of bank deposits and has been doing so for many years. Private banks thus offer well-functioning digital payment solutions and deposit accounts. Danmarks National bank offers digital deposit accounts for banks as well as payment solutions for banks’ mutual payments. And they do not see the need or benefits for Danmarks National bank also to run retail banking.
In the meantime, an even more decentralized project is being planned within the HRF (Human Rights Foundation). The HRF said in a recent press release that they are working on a project that will support human rights globally. The money received into the fund will effectively help human rights activists, civil society organizations, and journalists worldwide. This is because the non-profit plans to create various bitcoin projects. The idea is to set up a Bitcoin network that is even more decentralized and resilient to attacks.
The HRF wants to create an independent financial instrument that can be of great help to various human rights organizations worldwide. Through the community funding campaign, individuals and organizations will also receive support daily. 95% of the donations go directly to the winning bitcoin project developers, while the remaining 5% help the HRF work. The first winning project is CoinSwap, developed by a British developer, Chris Belcher. The interface it creates is designed to overcome state and corporate oversight. The platform makes it more difficult for authorities to track bitcoin transactions. In this way, Bitcoin can be a significant help to human rights organizations.
The death of George Floyd of America recently triggered an avalanche around the world. More and more anti-racism protests have been supported by several human rights foundations in the background. These organizations need urgent financial support. In this challenging situation, bitcoin may offer an ideal alternative, providing greater security than traditional currencies for cross-border transfers. HRF Director-General Alex Gladstein put it that “human rights defenders and journalists worldwide are facing increasing financial repression. Their bank accounts are frozen, their foreign funding is limited, and transfers are checked. It is becoming increasingly difficult to obtain donations and grants.”