Riksbank Discusses e-Krona Due to Threat of Stablecoins and Digital Euro

Riksbank is urging lawmakers to revisit the issue of a digital version of the Swedish krona amid the rise of stablecoins and the preparation of a digital euro. The central bank believes that without a convenient digital form, the Swedish krona may lose its position in payments. Deputy Governor Per Jansson noted that if the Swedish krona is not presented in digital form, it may yield to more convenient payment instruments. Riksbank has not made a final decision on the issuance of a digital currency but insists on the need to prepare a legal framework, as the launch of the project will take at least five years. In a letter, Riksbank warned of a potential decrease in demand for the Swedish krona due to stablecoins backed by foreign currencies. Although the risks are limited in the short term, they remain in the long term. The use of cash in Sweden has dropped to 5% during the last purchase. Riksbank is also considering the e-krona as a backup payment method in emergencies. A final decision on the launch of the e-krona has yet to be made, and lawmakers must approve the project.

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