According to the regulator, the key reason for launching a central bank digital currency (CBDC) is security. With a digital krona, payments could be made through both Swedish and European payment systems, even during power outages or telecommunications disruptions, the central bank said.
The Riksbank clarified that building the infrastructure for the digital krona would take about five years. However, parliamentary approval and legislative changes are needed first. Thus, even if authorities approve the launch of the e-krona now, it may not appear before 2030.
The European Union is currently actively working on the digital euro. The European Central Bank (ECB) plans to launch a pilot program at the end of 2027, with a full CBDC launch scheduled for 2029, subject to the adoption of relevant laws. On September 15, the ECB announced it was accepting applications from companies operating in e-commerce in the eurozone that wish to participate in testing. Selected companies will test a beta version of the digital euro in a special payment environment. The ECB wants to assess whether the digital euro can be used in everyday transactions.
Sweden fears that future European payment infrastructure could put the Swedish krona at a disadvantage. The digital euro will be accepted throughout the EU, whereas the digital krona would be accepted only in Sweden, with limited access to international payments, the central bank explained.
The Riksbank is particularly concerned about dollar-pegged stablecoins. According to Token Terminal, the global stablecoin market is worth $301.4 billion, of which $299.9 billion (99.5%) is in dollar-denominated tokens. Euro-pegged stablecoins account for only $913.1 million (0.3%). However, according to DECTA estimates, from July last year to June this year, the market capitalization of eight euro-pegged stablecoins compliant with the EU's Markets in Crypto-Assets (MiCA) regulation grew by 128%, from $295.6 million to $673.9 million. Trading volume increased by 43.1%, reaching $67.3 million.
Sweden's central bank proposed legalizing a state cryptocurrency as a means of payment five years ago, amid a mass shift away from cash toward digital payments. Last year, the Sweden Democrats proposed creating a state bitcoin reserve to combat inflation.