Sweden’s central bank is reassessing whether the country should move ahead with an e-krona, citing the European Central Bank’s digital euro timetable and the growing use of stablecoins as key reasons for reopening the discussion. In a letter dated Oct. 7 and published on Thursday, the Riksbank urged lawmakers on parliament’s finance committee to begin preparing legislation that could support a future launch of a Swedish central bank digital currency. The bank noted that the ECB is planning a digital euro pilot in 2027 and could roll it out to the public in 2029. According to the Riksbank, Sweden’s payment system could lose competitiveness if the country does not issue a digital version of its own currency. The bank also flagged rising use of foreign-currency stablecoins, especially those pegged to the U.S. dollar, as a longer-term concern, while saying the risk remains limited in the near term.
Sweden’s central bank is reassessing the possibility of launching an e-krona, pointing to the European Central Bank’s progress on the digital euro and the growth in stablecoin usage as two of the main reasons for revisiting a central bank digital currency.
In a letter sent on Oct. 7 to parliament’s finance committee and published on Thursday, the Riksbank urged lawmakers to start preparing legislation for a possible future rollout of the e-krona.
Digital euro timeline cited in the letter
The Riksbank said in the letter that the European Central Bank plans to begin a digital euro pilot in 2027 and could formally make it available to the public in 2029.
The bank said Sweden’s payment system could see its competitiveness weakened if the country does not introduce a digital version of its own currency.
Foreign-currency stablecoins seen as a long-term concern
The Riksbank also pointed to the increase in the use of foreign-currency stablecoins, especially dollar-pegged stablecoins, as a long-term concern.
At the same time, it said the risks from that trend remain fairly limited in the short term.
Earlier government review reached a different conclusion
Three years ago, a Swedish government inquiry concluded that there was not sufficient need at the time to issue an e-krona.
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