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Swedish central bank to test digital currency

Sweden's central bank plans to tap consulting firm Accenture to develop a pilot platform for a digital currency.

Sveriges Riksbank said the project will simulate how an e-krona could function in a test environment, as well as broaden its understanding of the technological possibilities for the currency.

In the project's first year, the central bank said the platform will allow e-krona payments through mobile phone, cards and watches, and will contain simulations of payment service providers and other parts of the Swedish payment system.

The project runs until the end of 2020, but can be extended to up to seven years. Should the project be extended, Riksbank said the currency will be further developed with more functions and tests.

Riksbank intends to sign an agreement with a supplier for the project before the end of 2019. The central bank said, however, that it has yet to decide if it will issue an e-krona.