Sweden’s Cash Payments Decline Amid Central Bank’s New Recommendations
Sweden, known for its high digital payment rate, has seen a significant decline in cash transactions in recent years. According to a recent report, around 90% of Swedes paid for their purchases without cash, a figure that placed the country at the top of the digital payment league, alongside Norway. However, the Swedish Central Bank has recently advised its citizens to use cash more frequently and even encouraged businesses to simplify cash transactions for their customers.
A survey suggests that public and private entities in Sweden should be required to accept cash. In response to the Russian invasion of Ukraine, the Swedish Central Bank is now advising citizens to maintain a cash reserve equivalent to a week’s expenses. The bank’s decision is attributed to the increased risk of cyberattacks following the Ukraine war, which could disrupt digital payment systems.
Sweden has been a pioneer in digital payments, with a high cashless payment rate. The shift from cash to digital payments began after a high-profile robbery in 2009, in which a large sum of cash was stolen from a money transport vehicle. Following the incident, Swedish lobby groups and the anti-cash organization “Kontantfritt nu” (Bargeldlos jetzt) claimed that two-thirds of Sweden’s cash was in the form of black money.
The stigma surrounding cash in Sweden has persisted, with 90% of Swedes now using cards for payments, both in-store and online and even sending money to friends and family through digital services. Some homeless individuals in Sweden have even started displaying digital donation options on their signs.
Despite being an EU member, Sweden does not use the euro as its official currency, instead using the Swedish krona (SEK) since 1873.