Riksbank proposes legal review for CBDC, estimates 5 years needed

Sweden’s central bank, the Riksbank, has proposed that parliament initiate a legal review for the potential introduction of a central bank digital currency (CBDC), referred to as the e-krona. The Riksbank cited rising geopolitical risks, the introduction of a digital euro, and the proliferation of stablecoins as factors necessitating a reassessment of the digital krona's need. It warned that increased use of foreign currency-based stablecoins and the digital euro could undermine the krona’s competitiveness in payments over time. The central bank suggested the possibility of utilizing the European Central Bank’s digital euro infrastructure if the e-krona is launched. Although no decision has been made regarding its issuance, the Riksbank indicated that system development and deployment by both the central bank and the financial industry would require at least five years, with additional time needed for legal revisions, highlighting the importance of early legal preparations.

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