Swedish MP Proposes Adding Bitcoin to National Foreign Reserves

Sweden may soon join the growing list of countries exploring Bitcoin-backed national reserves following a formal proposal by Swedish Member of Parliament Rickard Nordin.

In a letter dated April 8 and addressed to Finance Minister Elisabeth Svantesson, Nordin advocated diversifying the country’s foreign exchange reserves by including Bitcoin, citing its growing global importance.

Sweden’s Push for Digital Hedging Amid Rising Inflation

As per the letter, Nordin emphasized that the digital asset space is evolving fast, and many international actors now view Bitcoin as both a custodian asset and a hedge against inflation.

Sweden MP Rickard Nordin’s Letter to the Finance Minister / Source: riksdagen.se

He pointed to its use in several regions as a medium of payment and a safe haven during economic volatility.

“It is also an important way for freedom fighters to handle payments when under the oppression of authoritarian regimes,” he stated, reinforcing the political and humanitarian benefits of decentralized finance.

Sweden’s proposal aligns with a growing international discourse on Bitcoin’s role in state finance.

Countries such as El Salvador and Bhutan have already incorporated Bitcoin into their national treasuries, while developed economies are beginning to explore similar avenues.

Growing Policy Debates on Global Bitcoin Reserve Adoption

​​In March, President Trump signed an executive order for a national Bitcoin reserve, with the plan differing from typical acquisitions.

Authorities will build this reserve using Bitcoin seized in criminal cases, not through direct purchases from crypto markets, as the Treasury and Commerce Departments seek to create growth plans that avoid new costs for taxpayers. This approach has gained support worldwide.

Christian Lindner, Germany’s former finance minister and leader of Germany’s Free Democratic Party (FDP), supports the inclusion of Bitcoin in national reserves and pension funds, noting its value in financial planning.

Similarly, Switzerland has taken this idea further by suggesting a change to its constitution that would compel the Swiss National Bank to hold Bitcoin.

Central Banks Resist Bitcoin Reserve Adoption Despite Political Support

Other nations, such as Brazil, Poland, and Hong Kong, have also experienced political leaders championing Bitcoin integration in national reserves.

In Hong Kong, legislator Wu Jiexhuang suggested using the “one country, two systems” framework to secure Bitcoin reserves to bolster financial autonomy. However, not all countries share the enthusiasm for a BTC reserve.

In March, South Korea’s central bank said it had no intention of establishing a Bitcoin reserve, citing the IMF’s reserve asset criteria.

Likewise, Poland’s central bank has rejected the idea, pointing to concerns about volatility and the preference for traditional assets like gold and the U.S. dollar.

While the proposal marks a progressive step, Sweden’s broader stance toward crypto remains cautious. For example, in 2024, Swedish authorities took strong action against cryptocurrency businesses.

The Police Authority and Financial Intelligence Unit labeled certain crypto exchanges as “professional money launderers.” These exchanges were accused of enabling illegal transactions across borders.

Tax evasion compounded these concerns as The Swedish Tax Agency also uncovered widespread irregularities among Bitcoin miners operating in the country.

A striking 18 out of 21 crypto-mining operations submitted misleading tax reports between 2020 and 2023.

These false filings resulted in nearly $90 million in taxes being evaded. Officials worry about the implications.

Authorities see these regulatory gaps as potentially deepening money laundering risks within the cryptocurrency sector.

Despite regulatory challenges, some developments have been more optimistic.In February, Klarna, Sweden’s leading fintech firm, announced its intention to enter the crypto market ahead of its public listing.

Known for its “Buy Now, Pay Later” (BNPL) model, Klarna’s move could pave the way for broader crypto integration in Sweden’s financial ecosystem.

Frequently Asked Questions (FAQs)

The post Swedish MP Proposes Adding Bitcoin to National Foreign Reserves appeared first on Cryptonews.

Credit: Source link