Summary:
Only 1 in 10 purchases are made with cash in Sweden.
Authorities are encouraging citizens to keep and use cash for civil defense.
Sweden and Norway have the lowest cash circulation as a percentage of GDP globally.
The central bank is focusing on safety and accessibility over efficiency in payments.
Norway has enacted legislation to ensure retailers accept cash to safeguard against digital vulnerabilities.
Sweden's Cashless Revolution
In 2018, a former deputy governor of Sweden’s central bank predicted that by 2025, the country would likely be cashless. Fast forward to today, and that prediction has nearly come true: only 1 in 10 purchases are made with cash, with card payments and the Swish mobile payment system dominating the landscape.
A Shift in Perspective
However, in light of current global tensions—including the ongoing conflict in Europe and fears of Russian hybrid attacks—the once-promising cashless utopia is now seen as a potential vulnerability. The Swedish central bank reports that both Sweden and Norway possess the lowest cash circulation as a percentage of GDP globally.
Authorities Advocate for Cash Use
Recognizing the risks associated with a cashless society, Swedish authorities are now encouraging citizens to retain and use cash. In November, the defense ministry distributed a brochure titled If Crisis or War Comes, advising households to keep a minimum of a week’s worth of cash in various denominations to enhance civil preparedness.
A New Focus on Safety
The central bank emphasizes that while efficiency in payments has been a priority, ensuring safety and accessibility is now equally important. Following a recent inquiry, the government has proposed requiring certain public and private entities to accept cash, a recommendation supported by the central bank.
Digital Currency Developments
In recent years, the central bank has explored the development of a digital currency, the “e-krona”, but this project has since stalled. Now, the focus is on observing global digital currency trends.
Other Nordic Countries Join the Movement
Sweden is not alone in reconsidering its cashless policies; Norway has also enacted legislation mandating cash acceptance by retailers, with fines for non-compliance. Officials there have cautioned citizens to maintain cash reserves due to the vulnerabilities of digital payment systems to cyber-attacks.
The Irony of Cashless Societies
In a surprising twist, the world's two most cashless societies are now actively promoting the use of cash for emergency preparedness. As Norway’s former justice minister stated, “If no one pays with cash and no one accepts cash, cash will no longer be a real emergency solution once the crisis is upon us.”
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