Sweden's central bank is reconsidering a digital krona following the European Central Bank's advancement toward launching a digital euro, according to correspondence sent to parliament's Finance Committee.
In a letter dated October 7, the Riksbank urged lawmakers to begin preparing legislation for a potential central bank digital currency (CBDC). This represents a shift from a government inquiry three years prior that determined there was insufficient need for a digital version of the Swedish currency.
The central bank cited two primary motivations for revisiting the question. First, the ECB has announced plans for a digital euro pilot in 2027, with a potential public launch in 2029. According to the Riksbank, Sweden's payment system could lose competitiveness without a comparable digital currency option.
Second, the bank identified the growing use of foreign-currency stablecoins, particularly those pegged to the US dollar, as a longer-term concern. The Riksbank noted that if such stablecoins become widely adopted as a means of payment, the use of the Swedish krona could face pressure within Sweden itself.
The central bank estimates that developing and implementing a digital krona would require at least five years, excluding time needed for legislative changes. For this reason, the Riksbank recommends that Sweden begin legal preparations now, even if policymakers ultimately decide against launching a CBDC.
