STOCKHOLM, Sweden–The “cashless society” that has long been predicted has arrived in much of this country–and authorities say they are worried over the development.
An increasing sight around the country are “No cash accepted” signs as shops and eateries across Sweden go digital and mobile, according to Bloomberg.
But the pace at which cash is vanishing has authorities worried, Bloomberg added, and a review of central bank legislation that’s under way is now taking a special look at the situation, with an interim report due as early as the summer.
“If this development with cash disappearing happens too fast, it can be difficult to maintain the infrastructure” for handling cash, Mats Dillen, the head of the parliamentary review, told Bloomberg. He declined to give more details on the types of proposals that could be included in the report.
According to the report, Sweden is “widely regarded as the most cashless society on the planet. Most of the country’s bank branches have stopped handling cash; many shops, museums and restaurants now only accept plastic or mobile payments. But there’s a downside, since many people, in particular the elderly, don’t have access to the digital society.”
Bloomberg reported that in 2017 the amount of cash in circulation in Sweden dropped to the lowest level since 1990 and is more than 40% below its 2007 peak. The declines in 2016 and 2017 were the biggest on record.
An annual survey by Insight Intelligence released last month found that only 25% of Swedes paid in cash at least once a week in 2017, down from 63% just four years ago, Bloomberg reported. A full 36% never use cash, or just pay with it once or twice a year.
In response, the central bank is considering whether there’s a need for an official form of digital currency, an e-krona. A final proposal isn’t expected until late next year, but the idea is that the e-krona would work as a complement to cash, not replace it completely, Bloomberg said.