Sweden revisits digital krona as ECB advances digital euro plans
Summary
Sweden’s central bank has urged lawmakers to prepare legislation for a possible digital krona, reversing a 2021 inquiry’s conclusion that there was insufficient need. The Riksbank cited the ECB’s planned digital euro pilot in 2027 and potential launch in 2029, warning Sweden’s payment system could lose competitiveness without a digital version of its currency. It also raised concern that foreign-currency stablecoins could eventually put pressure on use of the krona, though near-term risk is limited. Developing a digital krona would take at least five years, excluding legislative changes, so the bank recommends starting preparations now even if Sweden later opts not to launch one.
