Only 5% of people still use cash, yet this country has picked up its central bank digital currency again
This week, Sweden’s central bank publicly called on lawmakers to reassess the e-krona, its proposed digital currency
📣 盘面异动群里喊
The reason isn’t technological progress. It’s that foreign-currency stablecoins and the digital euro, which could launch in 2029, are gradually squeezing the krona out of the picture 🏦
First, some background. In 2023, the Swedish government conducted a review and concluded that demand was insufficient, so it recommended against moving forward. Two years later, the central bank has changed its tune. Payment habits are changing, and so are security risks. It’s time to take another look.
Deputy Governor Per Jansson put it plainly: if cash goes digital and the krona doesn’t have a useful digital form, it won’t be able to compete with payment tools that are more convenient for cross-border transactions.
A small figure underpins this argument. In a survey by Sweden’s central bank, only 5% of respondents said they had used cash for their most recent purchase 💵
That’s no small thing. When cash usage falls to single digits, it means the central bank has fewer levers to manage the economy. The smoother payments become, the more money resembles an invisible layer of infrastructure.
The timeline is realistic, too. Lawmakers haven’t approved the plan yet, and the central bank itself acknowledges that even if it were approved today, building the system would take at least 5 years. The digital euro could launch as early as 2029, and Sweden hasn’t ruled out using its infrastructure directly.
The central bank hasn’t said it will definitely issue a digital currency. It’s only asking lawmakers to start preparing legislation now. The short-term risks are limited, but the long-term threat remains. It also sees value in offline payments, which could serve as a backup during power or internet outages.
My take is that stablecoins—not Sweden—are the real protagonists here ⚖️
Stablecoins are liabilities of commercial institutions, while central bank digital currencies are liabilities of central banks. They’re becoming increasingly similar in how they feel to use for payments, but they’re completely different when it comes to who stands behind them.
For a small, open economy, once payment habits shift, they’re hard to reverse. That’s why a country where cash has almost disappeared is, paradoxically, the most anxious.
The 5% figure is the result, not the cause. The cause is that US dollar-denominated stablecoins have already brought down the cost of cross-border payments.
For markets, the takeaway is this: the more successful stablecoins become, the faster central banks will move. What follows is tighter regulation and more compliant stablecoins entering the market 🦖
When was the last time you used cash? If stablecoins and a central bank digital currency were both available to you, which would you choose?
Every day, I bring you the latest on central banks and stablecoins around the world—not just what’s happening, but the logic and opportunities behind the headlines 👀🚀
Tap the profile picture to watch the livestream
This week, Sweden’s central bank publicly called on lawmakers to reassess the e-krona, its proposed digital currency
📣 盘面异动群里喊
The reason isn’t technological progress. It’s that foreign-currency stablecoins and the digital euro, which could launch in 2029, are gradually squeezing the krona out of the picture 🏦
First, some background. In 2023, the Swedish government conducted a review and concluded that demand was insufficient, so it recommended against moving forward. Two years later, the central bank has changed its tune. Payment habits are changing, and so are security risks. It’s time to take another look.
Deputy Governor Per Jansson put it plainly: if cash goes digital and the krona doesn’t have a useful digital form, it won’t be able to compete with payment tools that are more convenient for cross-border transactions.
A small figure underpins this argument. In a survey by Sweden’s central bank, only 5% of respondents said they had used cash for their most recent purchase 💵
That’s no small thing. When cash usage falls to single digits, it means the central bank has fewer levers to manage the economy. The smoother payments become, the more money resembles an invisible layer of infrastructure.
The timeline is realistic, too. Lawmakers haven’t approved the plan yet, and the central bank itself acknowledges that even if it were approved today, building the system would take at least 5 years. The digital euro could launch as early as 2029, and Sweden hasn’t ruled out using its infrastructure directly.
The central bank hasn’t said it will definitely issue a digital currency. It’s only asking lawmakers to start preparing legislation now. The short-term risks are limited, but the long-term threat remains. It also sees value in offline payments, which could serve as a backup during power or internet outages.
My take is that stablecoins—not Sweden—are the real protagonists here ⚖️
Stablecoins are liabilities of commercial institutions, while central bank digital currencies are liabilities of central banks. They’re becoming increasingly similar in how they feel to use for payments, but they’re completely different when it comes to who stands behind them.
For a small, open economy, once payment habits shift, they’re hard to reverse. That’s why a country where cash has almost disappeared is, paradoxically, the most anxious.
The 5% figure is the result, not the cause. The cause is that US dollar-denominated stablecoins have already brought down the cost of cross-border payments.
For markets, the takeaway is this: the more successful stablecoins become, the faster central banks will move. What follows is tighter regulation and more compliant stablecoins entering the market 🦖
When was the last time you used cash? If stablecoins and a central bank digital currency were both available to you, which would you choose?
Every day, I bring you the latest on central banks and stablecoins around the world—not just what’s happening, but the logic and opportunities behind the headlines 👀🚀
Tap the profile picture to watch the livestream