Riksbank urges Swedish parliament to reconsider e-krona

The Riksbank, Sweden’s central bank, has requested that Parliament examine the legal preparations necessary for a potential digital krona. This move revives a debate that was previously sidelined by a 2023 government inquiry which found no urgent societal need for a central bank digital currency (CBDC).

Deputy Governor Per Jansson emphasized that Sweden’s status as a highly cash-light society makes the issue critical. Recent Riksbank surveys indicate that only 5% of respondents used cash for their most recent in-store purchase. The bank expressed concerns that if the krona is not available in a usable digital form, it may struggle to compete with the upcoming digital euro or foreign-currency stablecoins.

Beyond competition, the Riksbank highlighted the importance of payment resilience as part of Sweden’s national defense strategy. A digital currency could provide solutions for maintaining payment capabilities during electricity blackouts, cyberattacks, or telecommunications outages. The bank estimates that implementation would take at least five years, following any necessary legislative changes.