Sweden’s central bank is again urging policymakers to consider a digital krona, arguing that changes in payments and the possible spread of foreign-currency stablecoins could weaken the role of the Swedish krona in everyday transactions.
The Riksbank is not formally endorsing issuance of an e-krona at this stage. Instead, it wants lawmakers to begin legislative preparations now, saying the legal work alone would take at least five years if Sweden later decides to move ahead.
Why the issue is back
The renewed push comes after a 2023 government inquiry concluded there was too little need for an e-krona. The Riksbank now says that assessment may need to be revisited because the payments landscape has continued to change and security concerns have grown.
An e-krona would give the public access to central bank money in digital form. Deputy Governor Per Jansson said that if cash effectively becomes digital but usable digital kronor are not available, the currency could struggle to compete with more convenient payment options that work easily across borders.
Stablecoins and the digital euro in focus
In a recent letter, the Riksbank warned that stablecoins linked to foreign currencies could reduce demand for the krona. The bank said it sees little immediate risk, but it considers the longer-term threat significant enough to justify renewed political attention.
The planned digital euro is another factor in the discussion. According to the Riksbank, a future European central bank digital currency could change payment habits in the region, increasing the pressure on Sweden to ensure that its own currency remains available in digital form.
Falling cash use and policy concerns
The case for re-examining the e-krona also rests on how quickly cash use has declined in Sweden. Riksbank data cited in the report showed that only 5% of Swedes surveyed used cash for their most recent purchase.
The central bank argues that a broader shift away from the krona could make it harder to conduct monetary policy effectively and to safeguard financial stability. Maintaining public access to central bank money, even in a digital setting, is presented as part of preserving the state’s role in the payment system.
Resilience and the next step
The Riksbank also sees a possible e-krona as a resilience tool. Among the features under consideration are offline payments, which could provide a backup if power supplies or telecommunications networks fail.
For now, the bank has stopped short of recommending issuance. Its immediate request is for lawmakers to reopen the question and begin work on the legal framework. Sweden could potentially build on infrastructure developed for the digital euro, which could launch in 2029 if EU lawmakers approve the necessary rules.
Source: www.coindesk.com