Nordic countries, once front-runners in the global shift towards cashless societies, are reconsidering their stance on the use of physical currency. Despite predictions that Sweden would be cashless by 2025, the country remains one of the most cashless societies globally, alongside Norway. Interestingly, both nations are now reaffirming the importance of cash.
In recent developments, Sweden and Norway have been reassessing their cash policies. Sweden currently has the lowest amount of cash in circulation, as a percentage of GDP, worldwide. Norway follows closely behind. This trend seemed to align with a forecast made in 2018 by a former deputy governor of Sweden's central bank that Sweden would become cashless by 2025—a prediction that has largely held true.
Sweden's journey towards becoming a cashless society gained momentum in 2012 when six major banks launched Swish, a mobile payment system. Swish has since become ubiquitous in Sweden, ranking as the second most common form of payment after card transactions. Today, merely one in ten purchases in Sweden is made using cash.
Despite the success of digital payments, recent measures indicate a renewed focus on maintaining cash accessibility. In December, the Swedish government published findings from an inquiry suggesting that certain public and private entities should be mandated to accept cash. The central bank supported this recommendation, emphasizing the need for preparedness in unforeseen circumstances.
“Measures need to be taken to strengthen preparedness and reduce exclusion so that everyone can pay, even in the event of crisis or war.” – The central bank
Additionally, in November, Sweden's defence ministry issued a brochure titled "If Crisis or War Comes," advising citizens to regularly use cash and maintain a week's supply in multiple denominations as a precautionary measure.
Norway is also taking steps to ensure cash remains a viable payment option. The country has introduced legislation that subjects retailers to fines or sanctions if they refuse to accept cash. This move underscores the importance of cash as an emergency solution in times of crisis.
“If no one pays with cash and no one accepts cash, cash will no longer be a real emergency solution once the crisis is upon us.” – Emilie Mehl, Norway’s former justice and emergencies minister