This would clarify the position of cash as legal tender. It is also important that the legislator takes a stance on the issue of what, in addition to cash, may comprise legal tender and how this relates to the Swedish krona as a currency. Legislation on legal tender should be as technologyneutral as possible so that it will also be applicable to future means of payment issued by the Riksbank. All in all, it would therefore be good if the means of payment issued by the Riksbank is given a stronger position in the future than it has at present. The e-krona will have only minor consequences for the banking system Some critics of central bank digital currencies claim that they create risks that affect the financial system. Some are worried that the Riksbank will compete with the banks and that credit granting might be affected. 9 But this is not true. With regard to supplying money, the Riksbank, like other central banks, has always competed with the banks. We have been offering cash as an alternative for 350 years now. One difference is of course that a digital form of cash in one way or another, such as an e-krona, would be a more effective competitor to the current supply of digital payment services than physical cash is. However, our analysis shows that the consequences for the banks would be very small under normal circumstances.
SPEECH DATE:  06/11/2018  SPEAKER:  Stefan Ingves  VENUE:  Di Framtidens betalningar  SVERIGES RIKSBANK SE-103 37 Stockholm (Brunkebergstorg 11) Tel +46 8 787 00 00 Fax +46 8 21 05 31 registratorn@riksbank.se www.riksbank.se  The e-krona and the payments of the future When did you last pay with cash? I suspect it was rather a long time ago. In Sweden, the Riksbank's money has been used for 350 years, so it entails a historical shift if you and all of us, completely stop using central bank money to make payments. Today we can buy food, pay our bills and receive medical prescriptions without needing to leave our homes. The more goods and services we purchase digitally, the more we need rapid and simple payment services that are adapted to our new way of shopping. Is it a problem that cash is being used less and less? Yes, in a way it is. If the Riksbank is to fulfil its mandate, to ensure that Sweden has a payment system that is both safe and efficient, the means of payment we issue must also be used. I believe that the arguments that once led to the central banks being allowed to issue money are still relevant, it is only the technology that has changed. This is why we at the Riksbank have decided to build a pilot version of a new type of Riksbank money – a digital krona, or e-krona.