However, the analysis is less urgent in other countries, where they have not experienced the same rapid decline in the use of cash. While the value of outstanding cash as a percentage of GDP is just over 1 per cent in Sweden, it is 10 per cent in the Eurozone and a good 20 per cent in Japan. Our Nordic neighbours are also conducting similar analyses because of a decline in the use of cash. Norway and Denmark, for instance, have produced reports and analyses on digital central bank money. The Bank of England and the Bank of Canada have published research articles in this field that analyse, for instance, possible motives for central bank digital currencies and their consequences for monetary policy and financial stability. 6 Central banks in some emerging market economies have also shown an interest in central bank digital currencies. These countries’ motives for being interested in central bank digital currency differ somewhat from our own. One motive is that they see the opportunity to broaden access to fundamental financial services to all parts of the population, that is to say, financial inclusion. Other arguments concern reducing the use of cash, which may be regarded as costly and risky. They also point to the negative environmental aspects of cash and to the fact that it enables money laundering and makes it easier for the black economy. 7 The work that is done is not solely theoretical.
At present, it can take anything from three hours to three days to transfer money between two banks in Sweden. How long the payment takes depends on the time and day that it is initiated. A payment made on a Tuesday afternoon, for instance, will reach its destination around three hours later, while a payment made on a Friday afternoon will not go through until Monday morning. With interbank payments to a country outside of the EU it gets even more complicated. This type of payment currently takes 2-7 days to go through. They can be made more quickly, but this can be expensive. There is thus a major difference between what a consumer expects, given the technology available, and how the systems actually work and I believe that the two must converge soon. Within Sweden there are already instant payments available for individuals through the Swish mobile app. But this system cannot cover all Swedish payments. As the demand for instant payments will increase in the future, the systems must be adapted to manage them better. The Riksbank currently runs the central payment system for large-value payments between the Swedish banks and other major agents. The system has been constructed to manage large-value payments in a secure manner. Individuals’ payments are lumped together into larger amounts before they pass through the system. The Riksbank also has regular contact with all of the participants.