Riksdag, two members of the Swedish Parliament, proposed to investigate the country’s efforts to tackle inflation and establish strategic Bitcoin reserves to diversify its holdings.
They also hope that the government will not change the laws governing Swedish central bank monetary policy, indicating that it is not intending to introduce digital central bank currency.
Swedish Democrats Dennis Diukarev and David Perez said in their proposal to Rixdug on Wednesday that, given that other countries like the US are already in the process of creating reserves, Sweden should “join this digital arms race, embrace the potential of Bitcoin, and join a group of countries that recognize it.”
Like the US, Diokarev and Perez came to mind the idea of funding the reserves through seized Bitcoin, but said the authorities’ decision to manage Bitcoin (BTC) is a “open issue” for now.
According to Bitbo, there are no public Bitcoin Holdings in Sweden. However, in November 2024, the country introduced a law that allowed authorities to confiscate luxury items, including code, even if they were not targeted for investigations.
Supporters of Bitcoin’s strategic reserves speculate that the nation-state-level Treasury is the next step to turning Bitcoin into a global reserve currency and standard currency unit.
Swedish Democrats are affecting the government
Swedish Democrats, who leaned right, won the second-largest vote in the 2022 general election with over 20%, are key players in favor of the current ruling coalition of the Medium Party, Liberal Party and Christian Democrats, giving some influence on minority governments.
Diokarev and Perez said in their Bitcoin proposal that Sweden is potentially positioned in “a disruptive change in global financial infrastructure” in building a strategic Bitcoin reserve.
They argue that Bitcoin reserves, alongside Swedish currency and gold reserves linked to “political, geopolitical and economic risks,” serve as protection against unrest around the world that otherwise affect standard reserves.
“In contrast, the value of Bitcoin is not driven by the financial policies of individual states or specific economies, which reduces the overall correlation of reserves.”
Signals that Sweden is embracing innovation
At the same time, Diukarev and Perez said they “own the Bitcoin signal that the country is open to digital innovation.”
The company’s database platform TRACXN lists 85 companies operating in the Swedish crypto sector.
On a practical level, Diukarev and Perez argue that the reserves act as protection against inflation, as they are at a supply cap of 21 million, faster than Fiat’s speed.
“Today, Bitcoin is the sixth largest asset in the world, comparable to silver, and is larger than global companies such as Tesla, Meta, and Amazon,” they said.
“Nevertheless, Bitcoin is only at the beginning of its journey, and we need to see exactly what role Bitcoin plays in the economy.”
Diukarev and Perez are not the first Swedish lawmakers to seek a reserve. In April, Swedish MP and Centre Party deputy leader Rickard Nordin issued an open letter urging Finance Minister Elizabeth Savantzan to consider adopting Bitcoin.
Related: Swedish health company raised $10 million to buy Bitcoin, with stock jumping 45%
Bitcoin is legal in Sweden, and crypto ATMs operate domestically. Swedish financial supervisors regulate exchanges and implement money laundering and knowledgeable customer regulations.
There are no CBDCs in Sweden
In addition to the proposal for a Bitcoin Reserve, Diokarev and Perez want the government to commit to not change the definition of the statutory statute of the Rixbank Act, which controls the monetary policy of Sweden’s central bank Sveriguez Rixbank.
Sweden is already operating primarily through digital money alternatives, and most people rely on the mobile payment app Swish. The country’s central bank launched the CBDC pilot project in 2020, and the final report was released in March 2024, declaring it a “final political decision.”
The Human Rights Foundation, which unveiled the CBDC Tracker in November 2023, cited CBDC’s increased payment efficiency and increased financial inclusion as potential benefits.
The drawbacks are listed as potential currency that invade privacy, new paths of government corruption, and among other concerns.
magazine: We risk being “front run” in Bitcoin reserves by other countries: Samson Mo