Sweden pushes digital krona legislation as ECB plans 2027 euro pilot

Sweden’s central bank has urged lawmakers to prepare legislation for a digital krona as the European Central Bank moves closer to testing its own digital currency and foreign stablecoins raise concerns about the Swedish currency’s future use. Summary Sweden’s central bank has urged lawmakers to begin preparing legislation for a digital krona, three years after a government inquiry found insufficient need for one. The Riksbank estimates that introducing a digital krona would take at least five years, excluding the time needed for legislative changes. The ECB’s planned digital euro pilot in 2027 and potential launch in 2029 have prompted Sweden to reconsider its position on a CBDC. The central bank warned that growing use of foreign currency stablecoins, particularly those pegged to the US dollar, could eventually put pressure on domestic krona payments. The Riksbank, in an Oct. 7 letter to parliament’s Finance Committee published on Oct. 15, said Sweden should begin examining the legal changes needed for a potential central bank digital currency (CBDC), even though no decision has been made to introduce one. Officials estimate that developing and introducing the digital krona would ...