Sweden revisits digital krona as ECB advances digital euro plans

The central bank also identified the growing use of foreign-currency stablecoins, particularly those pegged to the US dollar, as a longer-term concern, though it sees the near-term risk as limited.

“If stablecoins pegged to foreign currencies are considered attractive as a means of payment, the use of the Swedish krona could come under pressure even within Sweden’s borders,” the letter read.

The Riksbank estimates that introducing a digital krona would take at least five years, excluding the time required for legislative changes. For this reason, it recommends beginning legal preparations now, even if Sweden ultimately decides against launching a CBDC.