Swedish Lawmakers Call for Government Review on Digital Krona

(Bloomberg) -- Swedish lawmakers want the government and parliament to take over the review on the potential for a digital krona from the central bank as the nation explores how to cope with the fast dwindling of the use of cash.

On Thursday, Riksbank Governor Stefan Ingves and Deputy Governor Cecilia Skingsley visited the Finance Committee in a closed hearing to go through their work on the e-krona.

After the meeting, several committee members expressed the same view: that time is ripe to move the project one step further:

“Yes, as I see it, it’s time. And that is also what several consultation reports are saying,´´ said Elisabeth Svantesson, the Moderate Party chair of the committee, referring to recent responses from the financial regulator, debt office and bankers’ association.

All of the consultations expressed concern about the Riksbank pushing ahead with a digital currency, arguing the decision should be made by parliament.

Svantesson said that what’s needed is a broad review led by the government and parliament. It should be started as soon as possible since “these investigations tend to take time,´´ she said.

Social Democratic lawmaker Fredrik Olovsson, the committee’s deputy chairman, agreed that the government will need to take a broad look into the payment system and that the central bank is open to having a wider investigation.

“I think the Riksbank should get back to us with a proposal on what aspects they want highlighted in such an investigation,´´ he said.

Committee member Ulla Andersson, a Left Party legislator, said that the Riksbank’s work so far has shown promise.

“I think we need public infrastructure around our payment system,” she said.

To contact the reporter on this story: Rafaela Lindeberg in Stockholm at rlindeberg@bloomberg.net

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net

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