Sweden’s Riksbank has recommended that lawmakers prepare legislation for a potential digital krona, citing the European Central Bank’s progress toward a digital euro and the growing use of foreign-currency stablecoins as reasons to revisit a central bank digital currency. The Riksbank warns that Sweden’s payment system could become less competitive without a comparable digital version of its currency, especially as the ECB plans a digital euro pilot in 2027 and a potential public launch in 2029. The central bank identified foreign-currency stablecoins, particularly those pegged to the US dollar, as a potential threat to the use of the Swedish krona even within Sweden’s borders. The Riksbank estimates that introducing a digital krona would take at least five years, prompting the recommendation to begin legal preparations now, even if Sweden ultimately decides against launching a CBDC.
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