A Swedish Member of Parliament (MP) has proposed adding Bitcoin to the country’s foreign exchange reserves. This move, part of Sweden’s efforts to diversify its financial strategies and adapt to the growing digital economy, follows recent adjustments to the Riksbank’s strategic FX reserve allocation. The Riksbank has increased the proportion of U.S. dollar-denominated assets to 70%, while reducing euro-denominated assets to 17.5%. This change aims to enhance liquidity support for banks while maintaining flexibility in managing foreign exchange market interventions. The proposal, which aligns with growing global discussions around cryptocurrency integration into national reserves, has been highlighted by MP Sarah Knafo’s call for a strategic Bitcoin reserve and opposition to a central bank digital currency (CBDC). While the potential benefits of including Bitcoin in reserves are being explored globally, Sweden’s proposal is noteworthy as it reflects a forward-looking approach to financial innovation. However, several factors must be addressed before implementing this plan, such as volatility management strategies and clarity around regulations governing cryptocurrency holdings and transactions. Environmental concerns surrounding Bitcoin mining’s energy consumption also need further consideration.