Moving Toward a Cashless Sweden

In a study published on October 14, researchers from Stockholm’s Royal Institute of Technology announced that Sweden is making significant progress towards becoming the world’s first cashless society. The 106 billion Swedish krona in circulation six years ago has decreased to less than 80 billion (about USD$9.7 billion), with between 40 and 60% either stored privately, such as in a bank deposit box, or in underground markets. One reason that Sweden has managed to make such a successful transition away from using physical money is an app called Swish, which was created through collaborations with several major Danish and Swedish banks, including Sweden’s national bank. The app allows for real-time electronic money transfers between users, and planning is underway to expand the app to include retail and large e-commerce transactions. Sweden has consistently adopted new technologies to modernize its monetary system, including early electronic payment platforms and digital giro systems, which are digital payment transfers between bank accounts initiated by the payer.

Critics have noted that a transition to a cashless society could be difficult for some Swedish citizens, especially elderly Swedes living in rural areas who may be technologically illiterate. Undocumented immigrants and the homeless could also suffer. The lack of banknotes in circulation would make it more difficult to obtain Swedish currency, rendering them even more reliant on the government.