Sweden's Riksbank urges lawmakers to revisit e-krona as stablecoins and digital euro loom

Central bank warns foreign digital currencies could erode the krona's role in payments

By LineZotpaper

Published23 October 2026

Read Time2 min

Sweden's central bank has called on lawmakers to reconsider a digital version of the krona, warning that foreign-currency stablecoins and a planned digital euro could erode the currency's role in payments. The Riksbank says legislation should be prepared now, noting an e-krona would take at least five years to launch.

The Riksbank is reviving the debate over an e-krona, a digital form of central bank money that would give the public access to state-backed digital payments. Lawmakers have not yet approved the project, and a 2023 government inquiry found too little need for one. The central bank says changes in how people pay and growing security risks may warrant a new review.

"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," Deputy Governor Per Jansson told Reuters on the sidelines of a conference.

Cash use has fallen sharply in Sweden. Just 5% of Swedes surveyed used cash for their last purchase, according to Riksbank data cited in the report. The central bank warned in a recent letter that stablecoins tied to foreign currencies could reduce demand for the krona, and while it sees little near-term risk, it says the long-term threat remains. An e-krona could also serve as a backup payment option during power or telecom outages, with offline payments among its potential features.

Sweden could draw on the digital euro's infrastructure to build the system. That central bank digital currency could potentially debut in 2029 if EU lawmakers approve the required rules. The Riksbank has not taken a position on issuing an e-krona, but wants lawmakers to begin preparing legislation because the work would take years.

Analysis

Why This Matters

Sweden is one of the world's most cashless societies, and the Riksbank sees a digital krona as essential to preserving the public's access to central bank money.
Foreign stablecoins and a digital euro could shift payments away from the krona, weakening the central bank's ability to steer the economy and protect financial stability.
The timeline matters: any e-krona would take at least five years to launch, so decisions made by lawmakers now would shape Sweden's payments system into the 2030s.

Background

Central bank digital currencies, or CBDCs, are digital versions of a country's official currency, issued and backed by its central bank. Many central banks around the world have explored them as cash use declines and private digital payment methods grow. Sweden has been a pioneer in the study of CBDCs, but the Riksbank has so far stopped short of committing to one. The 2023 government inquiry's finding that there was too little need for an e-krona has now been called into question by the central bank as cross-border digital payments become more common.

Key Perspectives

The Riksbank: It argues that without a usable digital form of the krona, Swedes may turn to more convenient foreign digital payment instruments, eroding the currency's role and complicating monetary policy. It also cites resilience benefits, such as offline payments during outages.

Skeptics of the e-krona: The 2023 government inquiry concluded there was too little need for a digital krona, a view that has so far stalled the project. Questions about cost, privacy and whether the private sector already provides adequate digital payments remain part of the debate.

European Union and digital euro backers: A digital euro is being designed at EU level and could debut in 2029 if approved. Its infrastructure could be reused by Sweden, but it also represents the kind of convenient, cross-border digital currency the Riksbank warns could compete with the krona.

What to Watch

Whether Swedish lawmakers agree to order a new review of the e-krona's case, and how quickly they begin drafting legislation.
The progress of the digital euro through EU lawmaking, which could provide infrastructure for Sweden or intensify competitive pressure on the krona.
Any shift in the use of foreign-currency stablecoins among Swedish consumers and businesses, which the Riksbank is monitoring as a long-term risk.

Sources

Sweden’s central bank revives e-krona debate as stablecoins and digital euro loom · CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data

Checked

12 claims in this story checked against 1 source: 12 supported.

Show each claim

SupportedThe Riksbank is calling on lawmakers to reconsider an e-krona.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Sweden’s central bank is calling for lawmakers to reconsider a digital krona”
SupportedThe Riksbank warns that foreign-currency stablecoins and a planned digital euro could erode the krona’s role in payments.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “warning that foreign-currency stablecoins and a planned digital euro could erode the currency’s role in payments.”
SupportedAn e-krona would take at least five years to launch.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Lawmakers have yet to approve the e-krona, which would take at least five years to launch.”
SupportedAn e-krona would give the public access to central bank money in digital form.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “An e-krona would give the public access to central bank money in digital form.”
SupportedLawmakers have not approved the project, and a 2023 government inquiry found too little need for one.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “A 2023 government inquiry found too little need for one”
SupportedThe Riksbank says changes in payment habits and growing security risks may warrant a new review.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “the Riksbank says changes in how people pay and growing security risks may warrant a new review.”
SupportedDeputy Governor Per Jansson said the krona may not be able to compete with more convenient digital payment instruments if cash becomes digital and kronor are not available in usable digital form.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: ““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,” Deputy Governor Per Jansson told Reuters on the sidelines of a conference.”
SupportedFive per cent of surveyed Swedes used cash for their last purchase.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Just 5% of Swedes surveyed used cash for their last purchase”
SupportedThe Riksbank warned in a recent letter that foreign-currency stablecoins could reduce demand for the krona; it sees little near-term risk but says the long-term threat remains.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The central bank warned that stablecoins tied to foreign currencies could reduce demand for the krona in a recent letter. It sees little near-term risk but says the long-term threat remains.”
SupportedAn e-krona could serve as a backup payment option during power or telecom outages, with offline payments among its potential features.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The Riksbank also sees an e-krona as a backup payment option during power or telecom outages, with offline payments among its potential features.”
SupportedSweden could draw on the digital euro’s infrastructure to build an e-krona system.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Sweden could draw on the digital euro’s infrastructure to build the system”
SupportedThe digital euro could debut in 2029 if EU lawmakers approve the required rules.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “with that central bank digital currency potentially debuting in 2029 if EU lawmakers approved the required rules.”