Sweden's Riksbank asks lawmakers to prepare for a possible digital krona
Citing the ECB's digital euro timeline and dollar stablecoins, Sweden's central bank wants CBDC laws prepared now, three years after the idea was shelved.
CryptoGroup Newsroom · · 2 min read
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Sweden's central bank has urged parliament to start drafting legislation for a potential digital krona, reviving a central bank digital currency (CBDC) project that a government inquiry had set aside three years ago. The recommendation was made in a 7 October letter to the Riksdag's Finance Committee that was published on Thursday, Cointelegraph reported.
Why the Riksbank changed its tone
- The digital euro is coming. The letter points to the European Central Bank's plan for a pilot in 2027 and a possible public launch in 2029. Without its own digital currency, the Riksbank argues, Sweden's payment system could become less competitive.
- Foreign stablecoins. Dollar-pegged tokens are flagged as a longer-term worry rather than an immediate risk. "If stablecoins pegged to foreign currencies are considered attractive as a means of payment, the use of the Swedish krona could come under pressure even within Sweden's borders," the bank wrote.
A long runway
The Riksbank estimates a digital krona would take at least five years to build, not counting the time needed to change the law. That is why it wants the legal groundwork laid now — even if Sweden eventually decides not to issue one.
Sweden is one of the world's most cash-light economies and was among the first central banks to study a retail CBDC, with its e-krona pilot work dating back to the late 2010s.
Frequently asked questions
Has Sweden decided to launch a digital krona?
No. The Riksbank only recommends preparing legislation so that a launch would be possible; the final decision rests with parliament and the government.
How is a CBDC different from a stablecoin?
A CBDC is issued and backed directly by a central bank, while a stablecoin is issued by a private company that holds reserves to keep its token pegged to a currency.
Learn more in our explainer What is a stablecoin?
This article is for information only and is not financial advice. Crypto assets are volatile; do your own research. Read our disclaimer
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