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The Central Bank of Sweden will test the state cryptocurrency together with the bank Handelsbanken

The central bank of Sweden is collaborating with the commercial bank Handelsbanken to test the digital krona and the ability to process payments in state cryptocurrency.

In April, the Swedish Central Bank said it plans to include commercial banks in the next round of testing, which will assess how the digital crown can be used for large commercial and small retail payments. Now the Central Bank of Sweden has brought the pilot project of the state cryptocurrency to the next stage of testing.

“The e-krona pilot project is moving from simple modeling of participants to cooperation with external participants in a test environment,” the Central Bank of Sweden said in a statement.

According to Handelsbanken, for the bank “the initiative means the opportunity to participate in a project that may end with the release of one of the first state-owned cryptocurrencies in the world, available to the public.”

Most central banks are still only exploring the concept of a state cryptocurrency. The Central Bank of the Bahamas issued the Sand Dollar last October. Sweden and China are the only countries that have officially started testing the state cryptocurrency with partners and among citizens.

According to a May Bison Trails report, about 80% of central banks are exploring use cases for government cryptocurrencies, and 40% are already testing proofs of concept. The Bank of Canada recently said it has not found “meaningful uses” for government digital currencies.

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