Sweden’s central bank, Sveriges Riksbank, has issued a strong recommendation for the continued use of cash, advocating for legislative action to ensure its availability alongside digital payment methods. With the country moving towards a largely cashless society, where cash accounts for only around 10% of all transactions, the central bank’s stance marks a pivotal moment in the ongoing digital payments debate.
The Riksbank recently responded to a consultation by supporting proposals to make cash acceptance mandatory for essential goods and services, such as food and healthcare. Despite the growing prevalence of digital payments, the central bank maintains that cash remains crucial for societal inclusion, particularly for those who may face difficulties accessing digital payment systems. Additionally, cash provides a reliable alternative during emergencies, such as cyber-attacks or technical failures that could disrupt digital infrastructure.
Furthermore, the Riksbank has advocated for legislation that would require banks to accept cash deposits from individuals and provide cash handling services for businesses. These initiatives are designed to strengthen the country’s cash infrastructure and ensure that all citizens, regardless of their access to technology, can make payments and store money securely.
This policy shift reflects a broader trend in Nordic countries, where concerns about the vulnerabilities of digital systems and the potential risks of a fully cashless society have prompted reassessments of cash’s role. As Sweden continues to embrace technological innovation, the central bank’s push for maintaining cash as a legitimate payment method underscores the importance of balancing digital progress with inclusivity and security for all sectors of society.
By advocating for cash, the Riksbank highlights the need for a multifaceted approach to payments that ensures resilience, accessibility, and choice, even as digital systems continue to dominate.
