Quick breakdown
- Swedish MPs propose a national Bitcoin reserve as protection against inflation and geopolitical risks.
- Lawmakers want the government to rule out a CBDC by preserving current central bank legislation.
- Sweden’s crypto industry is growing, with 85 companies active and $48M raised in funding.
Swedish democrats push for Bitcoin adoption
Two members of Sweden’s parliament, Dennis Dioukarev and David Perez of the Swedish Democrats, have proposed the creation of a strategic Bitcoin reserve to safeguard the country’s economy against inflation and diversify national holdings.
In their motion submitted to the Riksdag on Wednesday, the lawmakers argued that Bitcoin could serve as a hedge against political, economic, and geopolitical risks tied to traditional reserves like gold and foreign currency.
A digital reserve strategy
Dioukarev and Perez suggested funding the reserve partly with seized Bitcoin, though the authority responsible for managing the assets remains undecided. Sweden currently has no publicly declared Bitcoin holdings according to BitBo but new legislation passed in November 2024 allows the government to confiscate crypto assets during investigations.
They stressed that Bitcoin’s limited supply of 21 million coins, low transaction costs, and independence from state monetary policies make it a resilient store of value. “Owning Bitcoin signals that a nation is open to digital innovation,” they added.
Opposition to CBDC adoption
Alongside the proposal, the lawmakers urged the government to commit to maintaining the current legal definition of money in the Riksbank Act. This would ensure Sweden’s central bank does not introduce a central bank digital currency (CBDC).
Industry backdrop
Sweden is home to 85 crypto-related companies, with 20 firms having raised $48 million in funding, according to Tracxn data. Advocates see a Bitcoin reserve as a sign that Sweden intends to embrace technological change and prepare for what could be a disruptive shift in the global financial system.
The Swedish Democrats, who hold significant influence as the second-largest party in the 2022 elections, argue that adding Bitcoin to Sweden’s reserves would position the country alongside nations exploring similar strategies, including the United States. Earlier this year, Sweden discussed the potential inclusion of Bitcoin in its foreign reserves, which could significantly impact the global financial landscape.
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