Sweden's central bank says the advance of the digital euro and the dominance of dollar-backed stablecoins may soon warrant another look at a digital krona, although no issuance decision has been made. In an October 7 letter to the Riksdag's Committee on Finance, Sveriges Riksbank argued that developments since an earlier inquiry could justify reassessing the country's need for digital central bank money. Sweden is among the world's least cash-dependent economies, and the Riksbank has spent years studying how retail central bank money could remain available to the public, including through a multi-year e-krona pilot that ended without a launch.

Why the central bank is reopening the question

Security is a key motivating factor. Because 95% of Sweden's financial industry is managed by private institutions, the Riksbank is concerned about safeguarding the payment system against cyberattacks or major disruptions. A digital krona could allow payments to continue through Swedish and European payment systems even during power or telecommunications outages. In an economy where nearly all daily payments run through that private infrastructure, the proposal is ultimately about keeping state-issued money available when those systems come under strain.

A five-year build, if parliament approves

Despite the renewed interest, the Riksbank is not proposing an imminent launch, and its letter states clearly that the question remains open.

"The Riksbank has not taken a position on whether a digital krona should be issued."
— Riksbank, letter to the Committee on Finance

Introducing a digital krona would require parliamentary approval. Even with permission in hand, the central bank estimates it would take around five years to build the required infrastructure, before accounting for the time needed to amend existing legislation. A digital krona might therefore only enter circulation sometime after 2030, even if lawmakers decided immediately — years behind the digital euro's targeted 2029 debut, one of the very developments the Riksbank cites for revisiting the question.

What the digital euro would plug Sweden into

The EU's digital euro framework is moving forward, with talks expected to conclude in 2026. The European Central Bank (ECB) aims to begin a pilot program in late 2027 and to launch the currency by 2029, depending on legislation.

On September 15, the ECB called on online and mobile merchants from the euro area to take part in the pilot. Selected companies will test a beta version of the digital euro in simulated payment environments, with the results intended to show how the currency would perform in everyday transactions.

Designed for roughly 350 million euro-area residents, the digital euro would offer offline and conditional payments, but not programmable spending restrictions. Sweden worries that future European payment infrastructure could leave the krona at a competitive disadvantage.

Dollar stablecoins dwarf the euro field

A Token Terminal snapshot puts total stablecoin supply at $301.4 billion, including $299.9 billion in dollar tokens, or 99.5%. Euro tokens hold just $913.1 million, about 0.3%.

Growth is nevertheless accelerating. DECTA found that eight euro stablecoins compliant with the EU's Markets in Crypto-Assets (MiCA) regulation grew 128% over the year ending June 28, 2026, from $295.6 million to $673.9 million, while trading volume rose 43.1% to $67.3 million. Cryptopolitan has also reported a 189.5% increase in euro stablecoin capitalization since mid-2024. The figures underline how dollar-denominated tokens dominate on-chain settlement while euro instruments remain a niche despite rapid percentage gains.

The Riksbank does not see an imminent danger to domestic krona use, but it is wary of longer-term risks.

ECB alarm, ESM calm

An ECB speech warns that dollar stablecoins could deepen dependence on US-denominated settlement. By contrast, an ESM working paper finds the overall financial impact manageable, although banks could lose cheap retail deposits and rely more on costly wholesale funding. Its authors also flag illicit payments and regulatory arbitrage.

Meanwhile, Cryptopolitan reports that EU firms face a January 8, 2027, deadline to resolve remaining non-MiCA stablecoin exposures. Such restrictions may shift trading venues rather than eliminate dollar-token demand. For crypto markets, the immediate issue is payment infrastructure and liquidity, not an established price shock.