Sweden reconsiders digital krona as ECB advances digital euro plans

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Sweden’s central bank has urged lawmakers to prepare legislation for a potential digital krona, pointing to the European Central Bank’s digital euro plans and growing stablecoin use.

In a letter to parliament’s Finance Committee published on Thursday, the Riksbank said Sweden’s payment system could lose competitiveness without a digital version of its currency. The move comes three years after a government inquiry found insufficient need for a digital krona.

The Riksbank cited the ECB’s planned digital euro pilot in 2027 and potential launch in 2029. It also warned that wider use of stablecoins pegged to foreign currencies could eventually put pressure on demand for the Swedish krona, although it considers the near-term risk limited.