Sweden Considers Strategic Bitcoin Reserve to Combat Inflation

Two members of the Swedish parliament (Riksdag), Dennis Dioukarev and David Perez of the Swedish Democrats party, have submitted a proposal for Sweden to establish a strategic Bitcoin reserve.

Key Motivations for the Bitcoin Reserve

The lawmakers argue that setting up a Bitcoin reserve is crucial for several reasons:

• Tackling Inflation & Diversification: Bitcoin's fixed 21 million supply cap could act as a hedge against inflation. A Bitcoin reserve would also diversify the nation's holdings, which currently rely on the krona and gold, both of which are tied to "political, geopolitical and economic risks."
• A "Digital Arms Race": They urge Sweden to "participate in this digital arms race" by joining nations that recognize Bitcoin's potential, noting the US is already exploring a reserve.
• Signaling Innovation: Owning Bitcoin would signal that Sweden is open to digital innovation. The country already hosts 85 crypto companies, which have collectively raised $48 million in funding.
• Funding the Reserve: Similar to proposals in the US, they floated the idea of funding the reserve through seized Bitcoin. The Swedish government already has a law, introduced in November 2024, allowing the confiscation of luxury items, including crypto.

The Political Context

The Swedish Democrats are a major political force, having received the second-largest share of votes in the 2022 general election (over 20%), giving them significant influence over the current ruling coalition. Their proposal frames the move as positioning Sweden for a potentially "disruptive shift in the global financial infrastructure."

Opposition to a Central Bank Digital Currency (CBDC)

In addition to advocating for a Bitcoin reserve, the proposal calls for the government to promise not to change the legislation governing the Riksbank Act. This is a signal that they do not intend to introduce a CBDC (Central Bank Digital Currency). This comes despite Sweden's central bank launching a CBDC pilot and the country already primarily using digital payments like Swish.

The lawmakers' concerns align with broader fears that a CBDC could infringe on privacy and open up new avenues for government corruption, though proponents cite improved payment efficiency and expanded financial inclusion as benefits.

October 2025, Cryptoniteuae