Riksbank Crowns the Krona 2.0 Quest as ECB's Digital Euro Sets the Pace 🪙

Sweden's central bank is asking lawmakers to begin drafting legislation for a digital krona, citing the European Central Bank's progress toward a digital euro and the rising use of stablecoins as reasons to reconsider a central bank digital currency. In an Oct. 7 letter to parliament's Finance Committee, published Thursday, the Riksbank urged action three years after a government inquiry concluded there was insufficient need for one.

The letter pointed to the ECB's planned digital euro pilot in 2027 and a potential public launch in 2029. According to the Riksbank, Sweden's payment system could become less competitive without a comparable digital version of its own currency. The central bank also identified the growing use of foreign-currency stablecoins, particularly those pegged to the US dollar, as a longer-term concern, though it sees the near-term risk as limited.

"If stablecoins pegged to foreign currencies are considered attractive as a means of payment, the use of the Swedish krona could come under pressure even within Sweden's borders," the letter read. The Riksbank estimates that introducing a digital krona would take at least five years, excluding the time required for legislative changes.

For this reason, it recommends beginning legal preparations now, even if Sweden ultimately decides against launching a CBDC. The move comes as AllUnity has debuted SEKAU, a fully reserved Swedish krona stablecoin, underscoring the private-sector momentum the Riksbank now aims to match on a public infrastructure level.