Why Sweden is abandoning its cashless society
Sweden is reversing its trend toward a fully cashless society due to national security concerns regarding potential Russian hybrid warfare. The central bank now mandates that essential retailers accept physical cash to ensure resilience during crises.
Why it matters
This shift illustrates how geopolitical instability is forcing nations to re-evaluate the risks associated with total reliance on digital infrastructure.
Sweden was predicted to become entirely cashless by 2030.
As the country developed its own mobile payment system, called Swish, banks slowly stopped handling cash, and tills disappeared from shops.
With cash circulation the lowest as a share of GDP in the world, Swedish progress was lauded, and observers wondered how it had forged so far ahead of the rest of Europe so quickly.
A sign on a store advertises it as a cash-free establishment, and thanks customers for paying by card or by Swish - Belinda Jiao for The Telegraph
It all changed when Russia launched its invasion of Ukraine.
Realising that reliance on an electronic payment system left Sweden vulnerable to blackouts or sabotage , the Riksbank – Sweden's central bank – urged civilians to keep 1,000 Swedish kronor (£80) per adult at home.
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