Bitcoin As The New Battleground—Sweden Signals Interest In Joining The Race

Two members of Sweden’s Riksdag have proposed that the state investigate creating a strategic Bitcoin reserve and make clear it will not change the law that defines the central bank’s monetary policy. The idea is framed as a way to guard against inflation and to give the country another kind of store of value.

Sweden’s Political Push

Reports have disclosed that the proposal comes from Swedish Democrats MPs Dennis Dioukarev and David Perez, who argued Sweden should “participate in this digital arms race.”

According to their filing, one possible source of funding could be seized Bitcoin, though who would manage any holdings remains undecided.

The Swedish Democrats won more than 20% of the vote in the 2022 election and now play a key role supporting the current coalition, giving their proposals weight in the capital.

A Growing Local Crypto Scene

Sweden already hosts a modest crypto industry. Reports show 85 companies operate in the sector there, and 20 of those firms have together raised $48 million in venture and private funding.

Crypto ATMs run in the country. Exchanges are regulated and subject to Anti-Money-Laundering and Know-Your-Customer rules enforced by the Swedish Financial Supervisory Authority.

A law passed in November 2024 now allows authorities to seize luxury items, including crypto, even when the owner is not the target of the original probe.

Dioukarev and Perez say a Bitcoin holding would sit alongside currency and gold reserves and help diversify state assets. They point to Bitcoin’s 21 million supply cap and argue that this hard limit could act as a hedge against inflation.

According to their proposal, Bitcoin is “currently the world’s sixth-largest asset,” larger than some global companies they named, and offers lower correlation with traditional reserves that can be affected by political or economic policy.

They also described transaction costs as “negligible” and suggested transfers can be quicker than some fiat transactions.

Other Swedish politicians have raised the issue before. Reports note that Rickard Nordin, deputy leader of the Centre Party, recently urged the finance minister to consider Bitcoin.

The new proposal asks the government to guarantee it will not alter the Riksbank Act to permit a central bank digital currency. That pledge is intended as a signal that Stockholm does not plan to move toward a CBDC.

Featured image from Meta, chart from TradingView