Purpose: The purpose of this study is to investigate what risks the current monetary payment system used in Sweden is exposed to, as well as to which alternative solutions can be applied, and to investigate whether Bitcoin can be part of the solution. Furthermore, a detailed review will be made of the various payment systems currently used in Sweden and its various components in order to thereby draw some conclusions.
Method: This study is a literature study based on four factors, full reserve banking, fractional reserve banking, current payment system and Bitcoin. By examining these depths to gain a broader understanding of the different components influence on each other, and thereby being able to draw the conclusion generated by the work. For this study, we have used a qualitative method, more specifically a content analysis with inductive approach.
Conclusion: Based on the information gathered during the course of the work, we can conclude that the payment systems exposure to risk is linked to the risks that the banks take through their money lending activities, and that all payment systems are provided as public services by the banks infrastructure. The conclusion we can draw from this literature study can be summarized in that the current payment system lacks two attributes in order to be considered long-term sustainable. These attributes consist of a separated payment system, and implementation of full reserve banking. Bitcoin fulfills both of these attributes.