Sweden's Central Bank Urges Lawmakers to Revisit a Digital Krona

Sweden's central bank wants lawmakers to take another look at a digital version of the krona.

What the Riksbank is saying

The Riksbank is concerned that stablecoins tied to foreign currencies, along with a planned digital euro, could erode demand for the krona over time, CoinDesk reported. The bank does not expect the krona to lose ground soon, but argues the danger could grow over time.

Deputy Governor Per Jansson warned that if payments go fully digital and the krona has no practical digital form, it could lose out to easier-to-use digital options that move freely across borders, according to Reuters as cited by CoinDesk.

Background

A 2023 government inquiry found too little need for an e-krona. The Riksbank says changes in how people pay and rising security risks justify a fresh review. Only 5% of Swedes surveyed used cash for their most recent purchase, according to Riksbank survey data cited by CoinDesk. The bank also sees an e-krona as a backup for payments during power or telecom outages, possibly with offline features.

The Riksbank has not decided whether to issue one. It wants legislation prepared now because the work would take at least five years. Sweden could build on digital euro infrastructure, which might debut in 2029 if EU lawmakers approve the rules.

Why it matters for crypto

The debate shows how quickly stablecoins have become a policy concern for central banks. As private digital dollars spread, more countries may push their own digital currencies, shaping the competition stablecoin issuers face in Europe.