Sweden's central bank just called on lawmakers to revive the e-krona — a digital version of the Swedish krona that would take at least five years to build — warning that foreign stablecoins and a planned digital euro could push the krona out of its own payments. With only 5% of Swedes still paying with cash, the Riksbank says the krona must go digital or risk fading against faster cross-border money.
Key points:
- The Riksbank wants a fresh government review of the e-krona, reversing a 2023 finding that there was too little need.
- It warns foreign-currency stablecoins and a digital euro could weaken the krona's role in payments and monetary control.
- Lawmakers have not approved anything yet — and even a green light now would mean at least five years of work.
An e-krona would be digital cash issued by the central bank itself — usable by the public just like banknotes, but on phones and computers. Deputy Governor Per Jansson told Reuters that if cash goes digital and the krona is not available in a usable digital form, it "may not be able to compete with other, more convenient digital payment instruments that can easily be used across borders." In simple terms: if Swedes stop using krona money, the central bank loses its grip on steering the economy and protecting financial stability.
Read also: HSBC Launches First HKD Stablecoin RedCoin for Retail Users — What Happens Next?
Why is this happening now?
Cash is disappearing fast in Sweden — the Riksbank's own data says just 5% of Swedes used cash for their last purchase. In a recent letter, the central bank warned that stablecoins tied to foreign currencies could slowly reduce demand for the krona. It sees little danger right now, but says the long-term threat remains. The Riksbank also pitches the e-krona as a backup payment option during power or telecom outages, with offline payments among its planned features.
For the market, the message is clear: stablecoins are forcing central banks to move. The digital euro could potentially debut in 2029 if EU lawmakers approve the rules — and Sweden says it could build on that infrastructure rather than starting from zero. Across Asia, countries are already pushing cross-border stablecoin systems, so the race between public digital currencies and private stablecoins is heating up. Nothing is decided yet — lawmakers have not approved the e-krona, and a 2023 government inquiry previously found too little need. But today's call is the strongest signal yet that Sweden wants back in the game.
Read also: Malaysia and Thailand Join Singapore's BLOOM Cross-Border Stablecoin Push — What Happens Next?
— Crypto News Daily News Desk
This post is news only, not financial advice. Always do your own research before buying or selling crypto.
Sources: CoinDesk, with quotes first reported by Reuters.
Comments
Post a Comment