Riksbank recommends legislative preparations for a digital krona, warns foreign currency stablecoins could impact domestic currency use

Odaily News: Sweden's central bank (Riksbank) has recommended that parliament begin preparing legislation for a potential digital krona, stating that the European Central Bank's (ECB) advancement of the digital euro and the growing use of foreign currency stablecoins make it necessary for Sweden to reconsider issuing a central bank digital currency (CBDC). The Riksbank stated that if stablecoins denominated in foreign currencies such as the US dollar become increasingly popular as payment tools, the use of the Swedish krona could also face pressure within Sweden.

The Riksbank noted that the European Central Bank plans to launch a digital euro pilot in 2027 and may officially roll it out in 2029. If Sweden does not have a similar domestic digital currency, the competitiveness of its payment system could be affected. The Riksbank estimates that the digital krona would take at least 5 years from initiation to implementation, not including the time required for legislation, and therefore recommends starting preparations for relevant laws now, even if the final decision is not to issue a digital krona. (Cointelegraph)