Sweden’s central bank revives e-krona debate as stablecoins and digital euro loom
Sweden’s central bank is urging lawmakers to reconsider a digital krona, arguing that foreign-currency stablecoins and a future digital euro could weaken the krona’s role in payments. Although a 2023 government inquiry found insufficient need and the Riksbank has not committed to issuing one, it wants legislation work to begin because development could take at least five years. The bank cites declining cash use—only 5% of surveyed Swedes used cash for their last purchase—and says a digital krona could help preserve monetary control and financial stability. It could also serve as a backup payment method during power or telecom outages, potentially supporting offline transactions. The Riksbank says the stablecoin threat is limited in the near term but may grow over time.
