A digital krona is back on Sweden’s political agenda after the country’s central bank, the Riksbank (Sveriges riksbank), submitted a letter to Parliament outlining why the idea deserves renewed consideration. The document, published on 15 October, highlights growing geopolitical risks, the development of the digital euro and changes in the global payments market. However, no decision has been made to introduce a digital Swedish currency.
The letter to the Finance Committee (finansutskottet) of the Swedish Parliament (Riksdag), dated 7 October, explains why the central bank believes Sweden should begin preparing the legislation needed for a possible future launch.
The proposal follows a government inquiry in 2023 which concluded that there was insufficient public need for a digital krona at the time. The inquiry nevertheless acknowledged that economic, political and technological developments could justify reassessing that conclusion.
Why Sweden is reconsidering the digital krona
A digital krona, previously known as the e-krona, would be an electronic form of Sweden’s national currency issued directly by the central bank.
Unlike the money held in ordinary commercial bank accounts, it would represent a direct claim on the Riksbank. It would complement existing payment methods, including cash, rather than introduce a different currency.
Sweden has long been at the forefront of digital payments, particularly through services such as Swish. However, the Riksbank argues that geopolitical instability and technological changes are creating new vulnerabilities.
Payment infrastructure is increasingly regarded as a matter of national security. Cyberattacks, disruptions to telecommunications and dependence on private providers could compromise access to essential financial services during a crisis.
According to the central bank, a digital krona could provide an additional payment method operating on Swedish and European infrastructure, potentially allowing transactions to continue offline during certain disruptions.
The Riksbank also points to the growing market for stablecoins, digital assets generally designed to maintain a stable value against another asset or currency. Most are linked to the USA dollar.
Although the bank does not consider foreign-currency stablecoins a significant immediate threat to the Swedish krona, it warns that their wider adoption could eventually weaken the currency’s position in domestic payments.
The digital euro is changing Sweden’s calculations
One of the most important factors behind the renewed debate is the European Union’s progress towards a digital euro.
The European Parliament approved its negotiating position in July 2026, allowing negotiations with the Council of the EU and the European Commission to proceed.
The European Central Bank (ECB) is preparing a pilot project for the second half of 2027 and aims to be ready for a possible public launch in 2029, subject to the necessary legislation and a final decision to issue the currency.
Although Sweden is an EU member state, it remains outside the euro area and continues to use the Swedish krona.
The Riksbank warns that future European payment infrastructure and legislation will increasingly be designed around the digital euro. Without a comparable solution, Sweden could eventually face disadvantages in payment innovation and cross-border transactions.
The bank therefore suggests that a future digital krona could make use of the infrastructure being developed by the ECB. Such cooperation could potentially allow faster and cheaper payments across Europe while preserving Sweden’s own currency.
The question also concerns privacy. The Riksbank argues that any Swedish digital currency should be designed to prevent surveillance of citizens’ purchases. It suggests that Swedish legislation could follow the privacy protections proposed for the digital euro, including anonymous offline payments.
At least five years before a possible launch
Despite renewed interest, the Riksbank has not recommended issuing a digital krona.
Under Swedish law, the central bank would need Parliament’s approval before introducing a digital payment instrument.
The institution estimates that implementing a digital krona would take at least five years, even without counting the additional time needed for legislative changes.
The process would require new legal provisions, technical infrastructure, cooperation with banks and payment providers, and potentially negotiations with the ECB.
For this reason, the Riksbank believes that Sweden should begin preparing the necessary legal framework now, even if the country ultimately decides against introducing the currency.
This is not an entirely new recommendation. In its Payments Report published in March 2026, the central bank had already called for a government inquiry into the legislative changes that might be required.
The latest letter brings that recommendation directly to Parliament, providing further details about the regulatory and technological challenges involved.
For now, the decision remains political. The Riksbank is seeking to ensure that Sweden could introduce a digital krona if necessary, without committing the country to doing so.
