Sweden’s central bank, the Riksbank, has formally requested that the parliament’s Finance Committee initiate legislative preparations for a potential digital krona. This recommendation follows a shift in perspective, as a government inquiry three years ago previously determined that there was no sufficient need for a central bank digital currency.
The Riksbank cited the European Central Bank’s progress on the digital euro as a primary driver for its decision. The ECB plans to conduct a pilot program for the digital euro in 2027, with a potential public launch scheduled for 2029. The Riksbank warns that Sweden’s payment system risks losing competitiveness without a digital national currency.
The central bank also expressed concerns regarding the rising adoption of foreign-currency stablecoins, particularly those pegged to the US dollar. The Riksbank noted that if such assets become widely used for payments, the domestic krona could face significant pressure. While the immediate risk is considered limited, the bank views this as a long-term challenge.
According to the Riksbank, the development and implementation of a digital krona would require a minimum of five years, a timeline that does not account for the necessary legislative changes. Consequently, the bank argues that legal groundwork must begin immediately to ensure the country is prepared, regardless of whether a final decision to launch the currency is made.
