The Basics of Bitcoins and Blockchains: An Introduction to Cryptocurrencies and the Technology that Powers Them

by Antony Lewis

The world’s oldest central bank, Sveriges Riksbank, was created in Sweden. Initially, the Bank was forbidden to issue banknotes due to lessons learnt from Stockholms Banco, Sweden’s first bank. Stockholms Banco issued Europe’s first banknotes but got carried away and issued more than could be redeemed, a money creation technique known as fractional reserve banking. Stockholms Banco failed when banknote holders wanted the underlying metal coins back. In 1668, Sveriges Riksbank was founded and later, in 1701, it was allowed to issue banknotes, then called credit notes. It gained exclusivity over banknote printing 200 years later in 1897 with the first Riksbank Act.