If the ECB launches a digital euro, it could affect Sweden even though we do not have the euro as our currency. In a staff memo written by employees of the Riksbank, it is noted that the consequences are likely to be limited, even if Sweden signs an agreement authorising payment service providers to distribute digital euros in Sweden.

The staff memo claims that if use of the digital euro in Sweden becomes more than marginal, it could strengthen competition and contribute to increased robustness in the Swedish payments system. At the same time, it is pointed out that the European Commission's legislative proposal includes an upper limit on the amount of digital euros that can be owned, so the impact on bank deposits is expected to be small. According to the assessment in the staff memo, a digital euro would not have a major impact on the exchange rate or monetary policy in Sweden, but it could, however, increase the economic costs of payments.

Further, it is pointed out that a digital euro circulating in Sweden could increase the need for an e-krona to protect the Swedish currency. The digital euro could also have a positive impact on the work on a possible future e-krona. The technology and regulatory framework being developed for a digital euro can reduce the costs and complexity of working with the e-krona by establishing a standard. In addition, it is emphasised that a digital euro, together with an e-krona, could improve and simplify cross-border payments.