The Riksbank has informed the Riksdag Committee on Finance that rapid changes in the payments market warrant renewed assessment of a digital krona and justify beginning legislative preparations now. The central bank has not decided whether to issue one, which would require the Riksdag’s consent, but developments since an earlier inquiry found insufficient societal need have brought the issue back into focus. The case for greater preparedness rests on the deteriorating geopolitical environment, progress toward a digital euro, the growth of stablecoins and concerns that Sweden’s payment system could lose competitiveness. A digital krona could provide an additional payment method using Swedish and European infrastructure, support offline payments during power or telecommunications disruptions and potentially enable faster, cheaper cross-border payments. The Riksbank considers foreign currency stablecoins a limited near-term threat to the krona but says longer-term risks cannot be ignored. Implementation by the Riksbank and market participants would take at least five years, excluding the time needed for legislation. The Riksbank therefore proposes starting with a public inquiry into the necessary legal framework, including the digital krona’s legal status, distribution, offline use, privacy, data protection and financial crime controls. It also considers using the European Central Bank’s planned digital euro infrastructure advantageous if Sweden later decides to proceed.
Sweden's Riksbank calls for early legislative preparations for a potential digital krona
The Riksbank has called for legislative preparations for a potential digital krona as the digital euro, stablecoins and geopolitical risks reshape the payments market. It has not decided to issue one, but estimates that implementation would take at least five years in addition to legislative work. A public inquiry would examine the legal framework needed if the Riksdag later authorizes issuance.