Swedish Central Bank: Recommends preparing legislation for the digital krona

The Swedish central bank (Riksbank) has suggested that lawmakers prepare relevant legislation for the potential launch of a digital krona, citing reasons including the European Central Bank (ECB) advancing the digital euro and the increasing use of foreign currency stablecoins.

In a letter, the bank stated that the ECB plans to conduct a pilot for the digital euro in 2027 and may launch it to the public in 2029. The Swedish central bank pointed out that if the payment system lacks a digital version of the national currency, its competitiveness may be affected. The bank believes that foreign currency stablecoins, such as those pegged to the US dollar, are widely used for payments within Sweden, which may put pressure on the use of the Swedish krona, but short-term risks are limited. The Swedish central bank estimates that the launch of a digital krona will take at least five years, not including the time required for legislative changes.