Sweden Eyes Bitcoin Reserve Amid Global ‘Digital Arms Race’

Sweden may soon enter the Bitcoin “digital arms race”, as two members of the Swedish parliament have proposed creating a strategic Bitcoin reserve. The initiative comes at a time when several nations are exploring Bitcoin as part of their monetary and strategic reserves, signaling a potential shift in global financial infrastructure.

Swedish Democrats Push Bitcoin Strategy

The proposal was presented by Dennis Dioukarev and David Perez, parliamentarians from the Swedish Democrats, the country’s second-largest political party. Their idea is to position Sweden alongside countries like the United States, which are already moving toward national Bitcoin holdings.

The lawmakers argue that Sweden should diversify its reserves beyond gold and fiat, which are exposed to political, geopolitical, and economic risks. According to their statement:

“Sweden should participate in this digital arms race and join the growing group of nations that have accepted and recognized the potential of Bitcoin.”

Sweden's Parliament acts on #Bitcoin! 🇸🇪

After JAN3's presentation at the Swedish Parliament, MPs @DennisDioukarev and David Perez submitted a motion to establish a Strategic Bitcoin Reserve and, crucially, to formally declare that Sweden will not introduce a CBDC. pic.twitter.com/T8mVFxlGki

— JAN3 (@JAN3com) October 1, 2025

Currently, Sweden has no public Bitcoin holdings, but authorities can confiscate crypto under laws introduced in 2024. Dioukarev and Perez suggested that seized Bitcoin could serve as a potential funding source for the reserve.

Why Bitcoin? Inflation Hedge and Global Hedge

The proposal highlights several reasons for building a Bitcoin reserve:

• Inflation Protection – Bitcoin’s fixed 21 million supply cap makes it resistant to inflationary pressures.
• Geopolitical Hedge – Unlike traditional reserves, Bitcoin is not tied to the monetary policies of any single state or central bank.
• Digital Innovation Signal – Adopting Bitcoin would position Sweden as an innovation-friendly nation in the evolving global financial system.
• Strong Asset Ranking – Bitcoin is now the sixth-largest asset globally, valued higher than Tesla, Meta, and Amazon.

Alongside their Bitcoin proposal, the lawmakers also urged the government to rule out introducing a central bank digital currency (CBDC). They want legal guarantees that the Riksbank Act—which governs Sweden’s monetary policy—will not be changed to introduce a CBDC.

This move aligns with growing skepticism toward CBDCs in parts of Europe, where critics argue that digital state money could erode financial privacy and individual freedom.

Sweden already has a vibrant crypto sector, with at least 85 companies operating in the industry, including exchanges and cold wallet developers. Collectively, Swedish crypto startups have raised $48 million in funding, underscoring the country’s potential as a regional blockchain hub.

Bitcoin is legal in Sweden, regulated under the Financial Supervisory Authority’s AML and KYC rules, and crypto ATMs are active across the nation.

If Sweden establishes a strategic Bitcoin reserve, it would join a growing list of countries experimenting with national crypto strategies. Advocates believe nation-state Bitcoin adoption is the next step toward its role as a global reserve asset.

For now, the proposal reflects a changing mindset in European politics—from treating Bitcoin as a speculative asset to viewing it as a strategic financial safeguard.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.