Sweden's finance minister has also said the government is tightening standards for crypto exchanges.
The Riksbank will partner with Handelsbanken to test how the e-krona might work in the real world.
Riksbank Governor Ingves said Sweden is entering a post-cash era.
Sweden's Riksbank said it would continue work with Accenture on a potential e-krona digital currency until next year.
While the Riksbank appears keen to launch the e-krona, bankers are worried about how the digital currency might affect their industry.
Riksbank Governor Stevan Ingves sees a Swedish digital currency as an imperative for the central bank.
Sweden's Riksbank has looked into the viability of central bank digital currencies for its local market.
Sweden’s Riksbank says its digital currency researchers are the best in central banking.
Riksbank's e-krona pilot will run on distributed ledger tech, but the entire project will be operated as only a simulation through at least 2021.
Sweden has picked Accenture to handle its e-krona digital currency pilot.
A senior economist at Sweden's Riksbank says central banks need to "keep up" with cryptocurrency advancements like Libra and XRP.