Sweden's Riksbank urges lawmakers to reconsider e-krona amid stablecoin and digital euro risks

The Riksbank warns that foreign stablecoins and a planned digital euro risk eroding demand for the Swedish krona, emphasizing that an e-krona is critical for securing national payments and monetary control. Although a 2023 government inquiry found insufficient need for an e-krona, the central bank suggests a new review is warranted due to changing payment habits and growing security risks. Deputy Governor Per Jansson told Reuters that without a usable digital krona, the currency may struggle to compete with convenient cross-border digital instruments. The Riksbank wants lawmakers to begin preparing legislation now, as the process would take at least five years; meanwhile, only 5% of Swedes surveyed used cash for their last purchase.