Where it stands
– Decision: none. The central bank has not said whether it favours issuing one; the Riksdag, Sweden’s parliament, must consent.
– Ask: start a public inquiry into the legal changes now.
– Lead time: at least five years of implementation, plus legislation, the Riksbank estimates.
– Design leaning: use the ECB’s planned digital euro infrastructure; no surveillance of purchases.
– Next marker: EU agreement on the digital euro regulation, expected in 2026.

Sveriges Riksbank, the world’s oldest central bank, has reopened Sweden’s debate over a central bank digital currency (CBDC), a digital form of cash issued by the central bank rather than a commercial bank.

In a letter to the Riksdag’s Committee on Finance, dated 7 Oct and published on 15 Oct, it said developments since 2023 mean “a new assessment may be required in the not-too-distant future”.

Deputy Governor Per Jansson put it more plainly to Reuters on Thursday. “If Sweden wants to have a digital krona and avoid falling too far behind, then it’s a good idea to begin this work now,” he said, according to Reuters.

Didn’t Sweden already decide against this?

Not exactly. A government payments inquiry reported in 2023 that the case for a digital krona was not then strong enough, according to the letter. The same report said economic, political and technological change could lead to a reassessment.

The Riksbank can issue a digital means of payment only with the Riksdag’s consent, under the Sveriges Riksbank Act. It says it has still not taken a position. Jansson told Reuters it is up to parliament to decide.

Why is it coming back now?

The letter gives four reasons.

Defence and resilience. Sweden’s geopolitical situation has “deteriorated significantly”, the Riksbank wrote. About 95% of the financial sector is run by private firms. A digital krona would give people another way to pay on Swedish and European infrastructure, including offline payments during power or telecoms outages, it said.

The digital euro. The EU’s legislative talks on a digital euro are expected to conclude in 2026. The European Central Bank (ECB) plans a pilot in the second half of 2027 and a public launch in 2029, the letter says. It will be available to about 350 million people. Without something comparable in kronor, Sweden’s payment system could lose competitiveness over time, the Riksbank wrote.

Stablecoins. Stablecoins are tokens pegged to another asset, mostly the US dollar. If those pegged to foreign currencies became popular for payments, the krona could come under pressure even inside Sweden, the letter says. The Riksbank does not see that as a significant risk, at least in the near term. “In the long run, however, it cannot be ignored,” it wrote.

Falling behind. Sweden led with mobile payments through Swish but is now lagging some European countries on instant account-to-account payments, the Riksbank said. In Norway and Denmark almost all banks offer them.

Cash use is already low. A Riksbank survey this year found only 5% of Swedes paid with cash for their most recent purchase, Reuters reported. “Sweden is a very cash-light society, and that matters,” Jansson said.

What would a digital krona run on?

The Riksbank says it would make sense to use the infrastructure the ECB is building for the digital euro. That would give access to a resilient system, which the ECB plans to run across at least three operational regions, and could make payments across Europe faster and cheaper, the letter says.

Sweden already settles instant payments on the ECB’s TIPS platform and is preparing to use the ECB’s T2 system for large-value payments, the Riksbank noted.

The letter also separates two ideas that are often confused. The digital euro is meant to allow conditional payments, which only complete once something happens, such as goods arriving. It will not be programmable money, which is restricted in how or when it can be spent, the ECB has said.

Could it be used to watch what people buy?

The Riksbank’s answer is no. “It should not be possible to use a digital krona for surveillance,” the letter says.

It points to the draft digital euro rules as a model. Under them, the ECB could not see who sends or receives an online payment; only the banks involved could, as with card and account payments today.

Offline payments in shops would be anonymous, like cash. A Swedish law could be designed the same way, the Riksbank said.

What does it change for people and businesses now?

Nothing yet. No digital krona is being built, and none can be issued without a decision by parliament.

For banks and merchants, the letter makes clear what a launch would involve: new software, connection to a new platform, system integration from accounts to customer apps, and a national information campaign.

Sweden’s banks are also working on private alternatives. SEB was part of the original consortium behind Qivalis, the bank-backed euro stablecoin, and Handelsbanken, Nordea and Swedbank joined in May 2026, according to the letter’s appendix. For how the EU regulates these tokens, see what MiCA means for crypto and stablecoins in the EU.

What’s next

  • Now: the Committee on Finance decides whether to push for a public inquiry. The Riksbank says it is ready to help.
  • 2026: EU agreement on the digital euro regulation expected. The Riksbank says it may then return with draft terms of reference for an inquiry.
  • H2 2027: ECB digital euro pilot.
  • 2029: planned public launch of the digital euro.
  • At least five years: the Riksbank’s estimate for its own and the market’s work, plus the time needed to change the law.

New to the basics? Start with what a stablecoin is.

This article is for information only and is not investment advice.