Sweden’s central bank revives e-krona debate as stablecoins and digital euro loom
Sweden's central bank, the Riksbank, is reconsidering the development of a digital currency, or e-krona, due to the rapid decline of cash usage and the potential competitive threat from foreign stablecoins. Officials are urging lawmakers to begin legislative preparations now, noting that the infrastructure could take at least five years to implement.
Why it matters
The move highlights the growing pressure on sovereign nations to modernize their monetary systems to maintain economic sovereignty and financial stability in an increasingly digital, cross-border payment landscape.
An e-krona would give the public access to central bank money in digital form. A 2023 government inquiry found too little need for one, but the Riksbank says changes in how people pay and growing security risks may warrant a new review.
“If our cash becomes digital and Swedish kronor are not available in a usable digital form, then the krona may not be able to compete with other, more convenient digital payment instruments that can easily be used across borders,” Deputy Governor Per Jansson told Reuters on the sidelines of a conference.
The Riksbank hasn’t taken a position on issuing one, but wants lawmakers to start preparing legislation now, since the work would take at least five years.
The central bank warned that stablecoins tied to foreign currencies could reduce demand for the krona in a recent letter. It sees little near-term risk but says the long-term threat remains.
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