Back in 2018, the former lieutenant governor of Sweden’s central bank made a prediction that by 2025, Sweden would likely become a cashless society.
Fast forward seven years later, and that prediction has largely come true. Cash transactions have significantly decreased, with cards being the most popular form of payment followed closely by Swish, a mobile payment system introduced in 2012. Other mobile phone payment services are also gaining popularity.
A recent report from the Central Bank indicates that Sweden and Norway have the lowest cash circulation as a percentage of GDP globally.
However, given the current geopolitical tensions and security concerns, the idea of a completely cashless society in Sweden may not be as appealing as it once seemed.
Authorities are now urging citizens to keep and use cash for civil defense purposes. The Ministry of Defense has distributed pamphlets to households, advising people to maintain a supply of cash in various denominations for emergency situations.
The Central Bank emphasized the importance of ensuring everyone can access money in times of crisis, shifting the focus from efficiency to safety and accessibility.
Recently, the government recommended that both public and private entities continue to accept cash, a suggestion that should be implemented by central banks.
As cash usage declines, central banks have been exploring their own digital currencies. However, the focus has now shifted to monitoring the global development of digital currency.
Norway, a neighboring Scandinavian country, has also been moving towards a cashless society, introducing mobile payment systems and imposing fines on retailers who do not accept cash. The government advises citizens to keep some cash on hand due to the vulnerability of digital payment solutions to cyberattacks.
Ultimately, in terms of emergency planning, having a balanced approach between digital and cash payments seems to be the way forward.
Source: www.theguardian.com
