Sweden urges households to keep cash on hand and mandates stores accept it, reversing its cashless trend to boost emergency preparedness.
STOCKHOLM: Sweden is reversing its pioneering drive towards a cashless society by urging citizens to keep banknotes on hand for emergencies and introducing legislation to mandate cash acceptance in essential stores.
The Swedish central bank recently recommended that each adult household keep 1,000 kronor (around USD 107) in cash to cover a week’s worth of essential purchases.
It also advised Swedes to ensure they have multiple payment methods, including cash, credit cards, and mobile payment services, to prepare for potential disruptions, crises, or even war.
On Wednesday, the government submitted a bill to parliament that would legally require grocery stores and pharmacies to accept cash payments.
The proposed legislation would also oblige banks to provide cash deposit services for customers and ensure businesses have access to services for depositing their daily cash takings.
This marks a significant shift for a nation where many people have not handled physical money for years, with most restaurants, shops, and services having moved exclusively to card or online payments.
Most Swedish bank branches no longer handle cash deposits or withdrawals, instead directing customers to online banking services.
Public Administration Minister Erik Slottner stated that the rapid digitalisation of society, while creating opportunities, has also introduced significant risks, particularly the spread of digital exclusion among the elderly.
He emphasised that requiring essential stores to accept cash is a crucial step for strengthening Sweden’s overall preparedness.
The country has been intensifying its civil preparedness and “total defence” measures since Russia’s full-scale invasion of Ukraine in 2022.
Official statistics show the amount of cash in circulation in Sweden has nearly halved since 2008, following a swift and generally smooth transition away from physical money.
Opposition to the cashless trend has persisted, primarily from elderly citizens who are less comfortable with digital banking and payment systems.
