Riksbank urges Swedish lawmakers to prepare legislation for digital krona

Sweden’s central bank, the Riksbank, has recommended that parliament begin preparing the legal framework necessary for the potential introduction of a digital krona. This recommendation comes three years after a government inquiry concluded there was insufficient need for a central bank digital currency (CBDC).

The Riksbank cited the European Central Bank’s (ECB) progress toward a digital euro—which includes a planned pilot in 2027 and a potential launch in 2029—as a primary driver. The central bank expressed concern that Sweden’s payment system could lose competitiveness if it lacks a comparable digital currency.

Additionally, the Riksbank identified the rise of foreign-currency stablecoins, particularly those pegged to the US dollar, as a long-term risk. The bank warned that if these stablecoins become attractive payment methods, the use of the Swedish krona could face pressure even within domestic borders. While the bank views short-term risks as limited, it estimates that implementing a digital krona would take at least five years, excluding the time needed for legislative changes.