Goodbye to a cashless society? Two European countries make a u-turn after discovering a major risk
The Covid-19 pandemic seemed to pave the death knell for cash as the amount of card transactions rocketed.
Cash seems doomed to disappear sooner or later, the global coronavirus seemed to accelerate its decline as many in the world opted to use debit and credit cards for payments as mobile devices (primarily phones/smartwatches) have become the ‘go-to’ method of making payments.
Reports indicate that over 70% of U.S. consumers have made a mobile payment in the past 12 months.
In Europe, Sweden and Norway are, in reports published by the Central Bank the nations with the lowest amount of cash in circulation, as a percentage of GDP.
For context, only one in ten purchases made in Sweden is paid for with cash. Credit cards are the primary option for Swedish citizens, along with various mobile payment services. However, the current uncertain geopolitical context with war and cyber attacks a growing possibility, coupled with trade tensions between the United States and the rest of the world, could lead both countries to have a change of heart.
Sweden and Norway change trend
The country’s respective Ministry of Defense have sent citizens a brochure entitled “If crisis or war comes,” and in the dossier, citizens are encouraged to use cash regularly and to save a minimum supply of one week’s cash at home to “strengthen preparedness.”
Both the Swedish and Norwegian governments are also hitting back at businesses who refuse to accept cash and are considering implementing a fine scheme should they fail to adapt their policy and accept cash.
Both governments are also urging citizens to keep some cash on hand, due to the vulnerability of digital systems to cyberattacks.
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