Sweden Accelerates Work on Digital Krona

Riksbank has recommended that lawmakers begin preparing for a potential digital krona, citing the ECB's progress on the digital euro and the increasing use of foreign stablecoins. In a letter dated October 7, 2026, to the parliamentary finance committee, published on October 15, the central bank urged the start of legal preparations—three years after a 2023 government investigation found insufficient grounds for a central bank digital currency (CBDC).

The trigger was the ECB's plans: a 12-month digital euro pilot in the second half of 2027 and a possible issuance in 2029, pending necessary legal approvals. The testing involves 19 national central banks and 36 banks and payment firms; coverage includes online purchases, stores, mobile payments, and person-to-person transfers. Participants use a test version without legal tender status. Sweden is an EU member but does not use the euro, and Riksbank is responsible for the krona. According to its assessment, the digital euro could make payment services more attractive and weaken the competitiveness of krona systems.

Riksbank estimates the introduction of a digital krona to take at least five years, excluding legislative changes, and therefore advises preparing the legal framework now, even if Sweden ultimately decides against a CBDC. The e-krona project was researched from 2017 to 2023; a technical pilot was completed in 2023. In March 2026, the bank already recommended a government investigation. The digital krona is intended to be a direct obligation of the central bank and to complement cash, not replace it.

The second risk is foreign stablecoins, especially those pegged to the US dollar. "If stablecoins pegged to foreign currencies become an attractive means of payment, the use of the Swedish krona may come under pressure even domestically," the letter states. The bank considers the short-term risk to be limited. In June, ECB board member Isabel Schnabel noted that the stablecoin market was approaching $300 billion, with USDT and USDC accounting for about 90% of the value.

Sweden already has a private krona stablecoin. In June 2026, Frankfurt-based AllUnity—a joint venture supported by DWS, Flow Traders, and Galaxy Digital—launched SEKAU, a regulated electronic money token with 1:1 krona reserves. It is available on Ethereum, Solana, Base, Tempo, and Polygon; Banking Circle serves as the reserve and transaction bank, Marginalen Bank provides banking support, and Trust Anchor Group provides infrastructure. Institutional clients can issue and redeem SEKAU through the Business Mint Account. These are private digital money, separate from the proposed digital krona.