Why is Sweden moving back to cash?

Sweden, once celebrated as the world's frontrunner in going cashless, is now taking legal steps to safeguard the role of cash in society. Policymakers and the central bank have come to see that physical money is a vital tool for social inclusion and national security.

Why going cashless has Sweden?

What is driving Sweden's cashless society? The country's rapid digitalization of payments has been driven by its tech-savvy citizens, strong banking sector, and progressive regulatory environment. However, it was a spate of robberies in the 1990s that set the country on its cashless path.

Is Sweden cashless in 2025?

A former deputy governor of its central bank predicted the country would be cashless by 2025. He was almost right. Today, just one in ten purchases are made with physical money. Cards dominate.

What country is going back to cash?

Sweden, the world's most cashless nation, is turning back to cash ... we are being lead by the nose. If cash becomes redundant people will simply invent another form of currency as they have done for centuries. I use cash every day.

Why does Sweden not accept cash?

The Bank of Sweden notes that the amount of cash in circulation in the country has halved since 2007. Part of this is due to a unique Swedish law that prioritises “freedom of contract” above any legal requirement to accept cash. In other words, it is up to businesses – including banks – whether they take cash.

Sweden’s quiet breakup with cash | ARTE.tv Documentary

Which country is the most cashless?

Sweden's central bank believes cash still needs to play an essential role in an increasingly cashless world. The Nordic country is considered one of the most cashless nations on the planet, with just one in 10 payments being made with physical money.

Why is Sweden turning back to cash?

Sweden, once celebrated as the world's frontrunner in going cashless, is now taking legal steps to safeguard the role of cash in society. Policymakers and the central bank have come to see that physical money is a vital tool for social inclusion and national security.

What country no longer uses cash?

Sweden: The World's First Cashless Country

Sweden is one of the most cashless societies in the world, with cash transactions making up only 3% of total transactions. Even the most straightforward payments are made through mobile apps like Swish. Sweden is also planning to eliminate banknotes by 2025.

Is Norway going back to cash?

A false narrative spreading online claims that Norway and Sweden are doing away with e-money and are returning to a fully cash-based society.

Will the world get rid of cash?

From paper to polymer banknotes

We have been issuing banknotes for over 300 years and make sure the banknotes we all use are of high quality. While the future demand for cash is uncertain, it is unlikely that cash will die out any time soon.

Is Sweden struggling economically?

Over the past decade, however, Sweden has lost its momentum in economic growth. The country has moved from overperformance to underperformance, with a nearly one-percentage-point negative swing in real GDP per capita growth—which now trails both the US and EU average (Exhibit 2).

Is cash dying out in the UK?

UK Finance research has shown that 39% of adults live an almost cashless life. As well as predicting that cash payments in the UK will continue to decline, and that by 2031, cash will account for 6% of all payments.

Is Denmark going back to cash?

The use of cash for payments has almost halved from 2017 to 2023 in Denmark. However, total cash in circulation in Denmark remains high, which means that there is still a demand for cash as a store of value. Cash is therefore not expected to disappear completely any time soon.

What are the disadvantages of cashless countries?

Is cash still king?

Even as the number of digital payment methods available to consumers continues to rise, cash is still king. Cash remains the number one choice for a large number of transactions. Some people prefer the ease of cash in completing transactions. Others feel more confident in the security offered by using cash.

Why is the UK becoming cashless?

While cash is essentially untraceable, digital payments are easier to track and credit or debit cards can quickly be cancelled if stolen. “A digital payment system allows for greater economic transparency, which can help curb illicit activities like tax evasion and money laundering,” adds Wheatley.

Is China cashless?

Although China is highly advanced in digital payments, cash is still accepted almost everywhere. While businesses shouldn't refuse cash payments, it's a good idea to carry smaller banknotes to ensure everything goes smoothly. Also, if you're visiting rural areas, the use of digital payments may not be as widespread.

Why doesn't Norway pay off its debt?

Norway had a government debt before oil was discovered in the North Sea. Some of that debt is still live because government issue some bonds with very long maturity periods. The Kingdom of Norway still had debts left over from fighting the Second World War when oil revenues started to flow in the 1970s.

Does Denmark still use cash?

In Danish and English, kroner is shortened to kr. In Denmark, you will see notes in values of 50, 100, 200, 500 and 1,000kr. Coins come in 1, 2, 5,10 and 20kr, as well as 50 øre. Most shops in Denmark accepts cash, but there is an increase in cash-less shops where it's only possible to pay by credit card or mobile.

Will cash disappear in Europe?

Cash is not going to disappear completely, but its role in everyday life could soon be significantly reduced. Consumers will have to change their habits and increasingly adapt to digital payments, which are inevitably becoming our future.

Which country is closest to being cashless?

Countries Leading the Race: Sweden is widely considered the leader in the cashless race, with the country potentially eliminating physical cash by 2024. Other countries making significant strides include Norway, the Netherlands, Finland, China, and the UK.

What are the risks of cashless payments?

Security Risks in a Cashless World

In a card-based society, the entire financial system relies heavily on digital infrastructure, making it vulnerable to cyberattacks. Hackers can target payment platforms and financial services, exploiting system vulnerabilities to steal money or personal data.

Which country will stop using cash?

Sweden is not the only Nordic country backpedalling on plans for a cashless society. Last year Norway, which has a popular equivalent to Swish called Vipps MobilePay, brought in legislation that means retailers can be fined or sanctioned if they will not accept cash.

Is Sweden in financial trouble?

Following a protracted period of weak growth, economic activity in Sweden is projected to remain sluggish in 2025 before starting to pick up somewhat in 2026. Trade and financial market disruptions are set to delay the recovery, given the high degree of openness of the Swedish economy.