The Riksbank has been exploring the potential issuance of digital currencies as cash use in Sweden declines dramatically.
"It has been an incredibly important catalytic event to sort of shake the tree when libra showed up out of the blue, and that forced us to think hard about what we do," Stefan Ingves, governor of the Riksbank, told CNBC's ""Part of my job is to produce a good/service called the Swedish krona which is convenient to use for Swedish citizens, and if I'm good at that in a technical sense then I don't have a problem," Ingves said.
The Riksbank is now looking to pilot the so-called "e-krona" currency this year, which it says could be introduced should the bank "wish to do so." Other central banks have ramped up their efforts in the digital currency space since Facebook announced plans for its libra coin back in June.
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