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Sweden is the latest country to explore Bitcoin at a national level, as two members of parliament proposed creating a strategic Bitcoin reserve to strengthen the nation’s financial resilience. The proposal comes from Dennis Dioukarev and David Perez of the Swedish Democrats, a right-leaning party that plays a key role in supporting the ruling coalition and its minority government. They argue that Bitcoin could act as a hedge against inflation, reduce dependence on traditional reserves, and signal Sweden’s openness to digital innovation.
A Push to Join the “Digital Arms Race”
In their motion submitted to the Riksdag, Dioukarev and Perez emphasized that global competition is intensifying as countries like the U.S. and others explore Bitcoin reserves. They urged Sweden to “participate in this digital arms race and join the growing group of nations that have recognized the potential of Bitcoin.”
Although Sweden currently does not hold Bitcoin as part of its official reserves, the lawmakers suggested the government could initially fund its reserve with confiscated digital assets, a practice already permitted under Swedish law since November 2024. Authorities are allowed to seize cryptocurrencies alongside other luxury goods, even if the assets were not the primary target of an investigation.
Why Bitcoin as a Reserve Asset?
The Swedish Democrats argue that Bitcoin offers unique advantages compared to traditional reserves such as gold and foreign currency holdings.
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Inflation hedge – With its capped supply of 21 million coins, Bitcoin is seen as a safeguard against inflationary pressures.
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Low correlation – Unlike fiat reserves, Bitcoin’s value is not tied to the policies of any single nation, offering diversification.
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Global liquidity – As the world’s sixth-largest asset by market capitalization, Bitcoin already surpasses major corporations like Tesla, Meta, and Amazon.
“Despite its current size, Bitcoin is only at the beginning of its journey,” Dioukarev and Perez noted, suggesting that Sweden could benefit from early adoption before wider global acceptance drives demand higher.
No to a Swedish CBDC
Alongside their proposal for a Bitcoin reserve, the lawmakers called on the government to rule out introducing a central bank digital currency (CBDC). They want assurance that the definition of legal tender in the Riksbank Act will not be altered to pave the way for a CBDC.
The Sveriges Riksbank launched a CBDC pilot in 2020 and released its final report in March 2024, leaving the decision up to political leaders. However, the Swedish Democrats argue that a CBDC could threaten privacy and increase government control over money, while Bitcoin offers an open, decentralized alternative.
This stance highlights a clear divide in Sweden’s approach to digital finance: embracing Bitcoin as a strategic asset while resisting state-issued digital money.
Political Weight Behind the Proposal
The Swedish Democrats hold significant influence in parliament, having won over 20% of votes in the 2022 general election. As a key backer of the Moderate-led coalition government, their proposals carry political weight even though they do not control the majority.
By promoting Bitcoin, Dioukarev and Perez believe Sweden can position itself at the forefront of financial innovation. They argue that owning Bitcoin would demonstrate that the nation is open to emerging technologies, boosting its reputation as a hub for digital finance.
Sweden’s Growing Crypto Industry
Sweden already has a growing crypto ecosystem. According to Tracxn data, around 85 crypto-related companies operate in the country, including exchanges and wallet providers, with 20 of them raising nearly $50 million in venture capital funding.
Bitcoin is fully legal, and crypto ATMs operate across the country, with exchanges subject to regulation by the Swedish Financial Supervisory Authority under AML and KYC rules.
The lawmakers argue that a government-backed reserve would further strengthen Sweden’s standing in the global crypto economy while protecting the country from potential shocks in traditional markets.
The Road Ahead
The proposal does not guarantee immediate adoption but signals a shift in the conversation around Bitcoin at the national level. If approved, Sweden would join a small but growing number of countries considering sovereign Bitcoin reserves as part of their broader financial strategy.
As Dioukarev and Perez conclude, “Building a strategic Bitcoin reserve positions Sweden for a potentially disruptive shift in the global financial infrastructure.”
Whether Sweden’s government embraces this call remains uncertain, but the debate underscores Bitcoin’s rising influence in global monetary policy.
