Sweden’s push to become a cashless society is heading into reverse
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Sweden has been pushing hard to become a cashless society for several years now, but things took an unexpected turn as the central bank submitted proposals to revert to cash.
The central bank now proposed an obligation to accept cash in the sale of essential gds, and strengthen the banks’ responsibility for cash handling.
The Riksbank submitted its proposal to the ongoing Cash Inquiry, stressing that it is essential to allow citizens to continue to use cash if they want to. It argued that this is the way to enable all members of society to make payments, and have a resilient payment system.
Riksbank’s governor explains the central bank’s new position
Erik Thedeen, Riksbank’s governor, commented by saying that people should always be able to use cash to pay for things like food, healthcare, and medicines. That doesn’t mean that digital payment methods are going away, but cash needs to be accepted, as well.
He further explained his stance by citing the increasingly turbulent global situation. Cyber attacks have been growing in number and severity for years, and there have been major power outages in southern Europe that showed the importance of being able to make payments even when the internet or electricity is out.
Riksbank also suggested extending and further clarifying the responsibility of major banks to offer corporate customers overnight deposits and petty cash as a matter of priority.
Meanwhile, it proposed to require banks to allow private individuals to deposit banknotes into accounts. Up to this point, there was no legal obligation for the major banks to provide this service, but Riksbank believes that this should change and create such an obligation.
Thedeen added that the cash infrastructure in the country is very vulnerable at this time, and that Sweden requires an urgent legislative action to protect it. Businesses must be able to make cash deposits and receive petty cash for people to be able to use cash in society at all, as he argued.
“The banks should take more responsibility for the cash of both their corporate and private customers.”
