Sweden Considers Bitcoin Reserve as Inflation Hedge
Sweden may become the next country to build its own bitcoin reserve. The proposal was submitted on Wednesday by Sweden Democrats MPs Dennis Dioukarev and David Perez. Their goal is to protect the economy against inflation, diversify national reserves, and send a signal that the country is open to digital innovation.
Inspiration from the U.S. and a new type of reserves
Under the proposal, Sweden’s reserves would include not only traditional gold and the national currency, but also bitcoin. Lawmakers point out that other countries, including the United States, have already taken similar steps. “Sweden should join this digital arms race and become part of the growing group of nations that recognize the potential of bitcoin,” said Dioukarev and Perez.
One possible source of funding would be confiscated bitcoins. It is not yet clear which institution would manage the reserve, but a law passed in November 2024 allows Swedish authorities to seize luxury assets, including cryptocurrencies, even if they are not directly tied to an investigation.
Political context: Sweden Democrats hold influence
The Sweden Democrats, who won more than 20% of the vote in the 2022 elections and became the second-largest party in the country, are not formally part of the ruling coalition led by the Moderate Party. However, their parliamentary support provides the minority government of the Moderates, Liberals, and Christian Democrats with the stability it needs.
According to the sponsors of the proposal, a bitcoin reserve would strengthen economic stability and protect against geopolitical and economic risks that could undermine traditional reserves.
Bitcoin instead of CBDC? Lawmakers reject digital krona
Alongside the proposal to create a bitcoin reserve, Dioukarev and Perez are also calling on the government to maintain the current Riksbank law and not to introduce a central bank digital currency (CBDC).
Since 2020, Sweden has tested a pilot project for a digital krona and published its final report in March, noting that the introduction of a CBDC is purely a political decision. However, lawmakers warn of potential downsides, including threats to privacy and new opportunities for corruption.
Cryptocurrencies in Sweden
According to Tracxn, Sweden is home to 85 cryptocurrency-related companies, with 20 of them having raised a total of $48 million from investors. The country also has bitcoin ATMs, and bitcoin is legal. The Swedish Financial Supervisory Authority regulates exchanges and enforces anti-money laundering and know-your-customer rules.
Dioukarev and Perez stress that bitcoin, with its limited supply of 21 million coins, can serve as a hedge against inflation. They also point out that bitcoin has become the world’s sixth-largest asset – on par with silver and surpassing companies like Tesla, Meta, and Amazon.
The debate over cryptocurrencies in Sweden is not new. In April, Rickard Nordin, MP and vice chairman of the Centre Party, also called for the creation of a bitcoin reserve in an open letter to Finance Minister Elisabeth Svantesson. If Sweden were to move forward with the plan, it would become one of the first European nations to diversify its finances in this way. Advocates see it as a step toward bitcoin becoming a global reserve currency.
Sources:
https://www.riksdagen.se/sv/dokument-och-lagar/dokument/motion/en-svensk-bitcoinstrategi_hd02793/
https://cointelegraph.com/news/lawmakers-meet-crypto-execs-advance-trump-bitcoin-reserve
https://bitbo.io/treasuries/countries/
https://cointelegraph.com/news/sweden-pressure-crypto-confiscated
https://politpro.eu/en/sweden/parties
https://cointelegraph.com/news/swedish-mp-bitcoin-reserve-finance-minister