Riksbank calls for reassessment of e-krona, warns stablecoins and digital euro could weaken domestic currency's payment position.

BlockBeats news, October 23 — Sweden's central bank is urging lawmakers to re-examine the necessity of issuing an e-krona, arguing that with the development of foreign currency stablecoins and the digital euro, the use of the Swedish krona in the payment system may face long-term pressure.

Deputy Governor Per Jansson said that if cash becomes further digitalized and the Swedish krona lacks a convenient digital form, the domestic currency may struggle to compete with cross-border digital payment instruments. Although the central bank has not yet decided whether to officially issue an e-krona, it hopes the legislative level will begin preparations as early as possible, as the related institutional and technical work is expected to take at least 5 years.

Sweden's cash usage rate has already fallen to a low level. Central bank data shows that only about 5% of respondents used cash in their most recent purchase. Sweden's central bank also believes that the e-krona could serve as a backup payment tool during power or communication outages and could potentially support offline payments. If the digital euro receives EU legislative approval, it could be launched as early as 2029, and Sweden may also draw on its infrastructure in the future.