Sweden’s Riksbank has asked lawmakers to begin preparing legislation for a possible digital krona, reopening a debate that had largely cooled after a government inquiry three years ago found no clear need for a central bank digital currency. In a letter dated Oct. 7 and published Thursday, the central bank said developments outside Sweden have changed the picture enough to justify fresh legal planning.
The Riksbank pointed to the European Central Bank’s digital euro timetable as one reason. The ECB plans a pilot in 2027 and could make the currency available to the public in 2029. According to the Riksbank, Sweden’s payment system could lose competitiveness if it does not have a comparable digital version of its own currency.
The bank also flagged the longer-term growth of foreign-currency stablecoins, especially those pegged to the US dollar. While it said the near-term risk remains limited, it warned that wider appeal for such tokens as a payment method could put pressure on the use of the Swedish krona inside Sweden. The Riksbank estimates that launching a digital krona would take at least five years, not including the time needed for legal changes, which is why it wants legislative work to start now even if no final launch decision is made.
Sweden’s central bank is reopening the case for a digital krona and has asked lawmakers to prepare legislation for a possible rollout, citing the European Central Bank’s digital euro plans and the growing use of stablecoins.
In an Oct. 7 letter to parliament’s Finance Committee, published Thursday, the Riksbank said Sweden should begin legal preparations for a potential central bank digital currency, or CBDC. The move comes three years after a government inquiry concluded that there was not enough need for one.
Riksbank points to the ECB’s digital euro timeline
The letter highlighted the European Central Bank’s plan to run a digital euro pilot in 2027, followed by a possible public launch in 2029. The Riksbank said Sweden’s payment system could become less competitive if the country does not have a comparable digital form of its own currency.
The central bank estimates that introducing a digital krona would take at least five years, not counting the time needed for legislative changes. On that basis, it said legal preparations should start now, even if Sweden later decides not to launch a CBDC.
Foreign-currency stablecoins seen as a longer-term concern
The Riksbank also pointed to the growing use of foreign-currency stablecoins, especially those pegged to the US dollar. It described the near-term risk as limited, but said the issue could become more important over time.
“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 letter said.
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