Riksbank Recommends Starting Preparations for Digital Krona Legislation

Odaily reports that Sweden's central bank (Riksbank) has recommended that lawmakers prepare relevant legislation for the possible launch of a digital krona, citing reasons including the European Central Bank's (ECB) advancement of the digital euro and the increasing use of foreign currency stablecoins. In a letter to the parliament's finance committee on October 7, the bank stated that the ECB plans to conduct a digital euro pilot in 2027 and may launch it to the public in 2029.

The Riksbank pointed out that if the payment system lacks a digital version of the national currency, its competitiveness could be affected. The bank believes that foreign currency stablecoins, such as those pegged to the US dollar, being widely used for payments within Sweden could put pressure on the use of the Swedish krona, though short-term risks are limited. The Riksbank estimates that launching the digital krona will take at least five years, not including the time required for legislative changes. (Cointelegraph)