Sweden’s central bank is reviving the e-krona debate, warning that stablecoins and the digital euro could threaten the country’s monetary sovereignty. The Riksbank sees a digital krona as critical to securing national payments and monetary control — but lawmakers have yet to approve it, and launch would take at least five years.
Sweden’s Riksbank (Credits: CoinDesk)
Why Sweden Is Reconsidering the E-Krona
According to CoinDesk’s report, Deputy Governor Per Jansson told Reuters that the Riksbank wants lawmakers to start preparing legislation now. “If our cash becomes digital and Swedish kronor are not available in a usable digital form, then the krona may not be able to compete with other, more convenient digital payment instruments that can easily be used across borders,” he said.
The central bank warned in a recent letter that stablecoins tied to foreign currencies could reduce demand for the krona. It sees little near-term risk but says the long-term threat remains. An e-krona would give the public access to central bank money in digital form, though a 2023 government inquiry found too little need for one — the Riksbank says changes in payment habits and growing security risks may warrant a fresh review.
Cash Is Disappearing in Sweden
The urgency comes from a stark number: just 5% of Swedes used cash for their last purchase, according to Riksbank data. If that trend continues, a shift away from the krona could make it harder for the central bank to steer the economy and protect financial stability. The Riksbank hasn’t taken a position on actually issuing an e-krona — but it wants the legal groundwork laid now.
Also Read: Bitcoin Bounces Back to Nearly $82,000 as Gold Recovers | Nasdaq Sinks 694 Points as Meta Stock Slumps 7%
Source: CoinDesk — read the full story there.
