Swedish Reserve Bank Riksbank Warns Users of Crypto Scammers Selling Fake ‘e-Krona’
While Sweden has gained a reputation as a remarkably progressive country with regards to embracing technology, there are some things that don’t change – scams . According to the country’s reserve bank, a warning has been sent out to the public to be vigilant around companies and/or individuals that […]
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While Sweden has gained a reputation as a remarkably progressive country with regards to embracing technology, there are some things that don't change – scams.
According to the country's reserve bank, a warning has been sent out to the public to be vigilant around companies and/or individuals that are reportedly selling the electronic version of its sovereign currency – the e-Krona.
Scammers are allegedly promoting rates on the digital currency, with the government stating that they are all fraudulent, citing that the e-Kroner project has yet to be concluded.
The Riksbank has gone on record stating that ‘no decision has been taken regarding the issuing of e-Kronas,' and states that any contrary claims are completely untrue. The organization has given further credence to this by the fact that these scams are only ever being perpetrated via the internet or through telephone calls.
“On certain websites and in social media, claims have been made that it is possible to purchase e-kronas. The Riksbank has also been contacted by individuals describing how they have been called by companies claiming to be selling e-kronas on behalf of the Riksbank.”
Should citizens of residents of Sweden have any concerns regarding calls or online contact that is made by retailers claiming to have an offer to buy e-krona, the Riksbank has advised contacting the bank immediately.
The Case Of Vanishing Money
The e-krona project itself began at the beginning of 2017 in direct response to the diminishing number of individuals using cash in Sweden. Statistically speaking, a far larger percentage of the population has since switched to cashless, and often cardless transactions through the use of smartphones.
When taking into account the fact that the amount of cash that was in circulation throughout Sweden plummeted by 40 percent in 2009 alone, this isn't exactly surprising. Interestingly enough, proposals for a digital currency variation on the Krona were initially brought up in early 2015.
Cecilia Skingsley, the deputy governor for the Swedish Riksbank, has been hawkish regarding the idea of a digital currency was a revolutionary concept and should be cultivated. Making it clear that she was supportive of the prospect.
“The declining use of cash in Sweden means that this is more of a burning issue for us than for most other central banks. 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.”
While we may look at 2009 as a major year of decline for physical currency in Sweden, but the reality is that it has continued to fall year on year, and retail stores throughout the country are beginning to react to it. According to a report during the latter point of last year – approximately 50 percent of retail companies in Sweden will no longer be accepting physical cash by 2025.
There's also an increasing number of banks that have since announced that they will no longer be handling cash due to a diminishing number of users making deposits in it. This presents a major challenge as a significant number of the population, including vulnerable groups such as those with disabilities and the elderly struggle to make use of the newer digital mediums.
In An Electric World – Outages Are Apocalypse
While the volume of physical cash in circulation has depleted, this has made the Riksbank take into consideration other ways of fostering and increasing the use of cash in the country. One of these has been the subsidization of cash for banks and companies by reducing any costs that they may incur when they handle it.
The country cannot upgrade its way away from physical cash, no matter how far innovation comes. This is according to Stefan Ingves, the Riksbank's governor, who talked about the persisting need for physical cash in the future.
“If the power supply is cut it’s no longer possible to make electronic payments. For reasons based purely in preparedness we need notes and coins that work without electricity.”