The Nordic countries were the first to adopt digital payments. Now, online banking is seen as a potential threat to national security, and Sweden is once again valuing cash.
In 2018, a former deputy governor of Sweden’s central bank announced that by 2025 the country would no longer use cash.
After seven years, this prediction has proven to be almost true. Only one in 10 purchases is made with cash, and card is the most widespread form of payment, followed by the Swedish mobile payment system Swish, launched by six banks in 2012 and now ubiquitous. Other mobile payment services are also rapidly growing.
In fact, according to the central bank's annual payment report published this month, Sweden and Norway have the lowest amount of cash in circulation as a percentage of GDP in the world.
However, in the current context, with the war in Europe, the uncertainty generated by the United States, and the fear of Russian hybrid attacks that partially affect daily life in Sweden, the promise of a cashless life has proven to be a utopia, writes The Guardian.
Exposure to online payments is considered such a serious risk that authorities are trying, in the name of civil defense, to encourage citizens to keep and use cash. In November, the Swedish Ministry of Defense sent a brochure titled "If a crisis or war comes" to every household, advising people to use cash regularly and to keep savings for at least a week in various denominations to "strengthen preparedness."
"Measures must be taken to strengthen preparedness and reduce exclusion so that everyone can pay, even in times of crisis or war," the central bank's report states. Efficiency has been the priority of payments for years, but now safety and accessibility "are at least as important," the document further states.
In December, the government in Stockholm published the findings of an investigation that proposed that public and private entities be required to accept cash – a recommendation the central bank says authorities should implement.
In recent years, the central bank has been preparing to launch its own digital currency, the "e-krona," due to the decrease in cash in circulation. However, the project was concluded a few years ago, and the bank is now focusing on monitoring the global development of digital currencies.
Sweden is not the only Nordic country abandoning plans to phase out cash. Last year, Norway, which also has a popular digital payment system called Vipps MobilePay, introduced a regulation stating that retailers can be fined or penalized if they do not accept cash. The government also advised citizens to "keep some cash on hand due to the vulnerabilities of digital payment solutions to cyberattacks."
- All stores are now required to accept card payments. Additionally, you can withdraw cash like from an ATM
- Ciolacu: Good people, no one is abolishing cash. No one is forcing you to have a card. Can't you see what a blatant lie this is?
Emilie Mehl, former Minister of Justice and Emergency Situations in Norway, clearly stated why the return to cash is necessary: "If no one pays with cash and no one accepts cash, cash will no longer be an emergency solution once the crisis hits us."
In conclusion, when it comes to preparing for emergencies, most cashless societies in the world have come to continue relying on cash.
T.D.