Sweden and Norway are revising their plans to create a fully cashless society due to security risks associated with digital payment systems. The concerns are linked to potential cyberattacks and hybrid threats, particularly from Russia, in the context of growing global instability, as reported by Delfi.
These Scandinavian countries have a well-developed digital payment infrastructure, supported by good internet coverage, high digital skills, and a rapidly growing fintech sector. In Sweden, the mobile payment system Swish is popular, allowing payments almost everywhere, from kiosks to clothing stores. In Norway, a similar system, Vipps, has merged with Denmark's MobilePay and is now also available in Sweden. Back in 2018, the deputy head of Sweden's central bank predicted that the country would completely eliminate cash by 2025.
However, with the start of Russia's war against Ukraine in 2022, both countries have reassessed their national security approaches, including in the financial sector. Sweden significantly altered its defense strategy and joined NATO, while Norway strengthened its border controls with Russia. In government recommendations sent to all Swedish households in a brochure titled "If Crisis or War Comes," the Ministry of Defense advises citizens to regularly use cash and keep a week's supply at home. The Ministry emphasizes that having multiple payment options increases readiness for potential crises.
The Swedish government is also considering legislating the right to pay with cash for certain goods. While cash remains a legal payment method, some stores and restaurants with appropriate notices do not accept it. The share of cash payments in Swedish stores has dropped from nearly 40% in 2012 to about 10% in recent years.
Norway, where cashless payments are also on the rise, passed laws this summer imposing penalties on merchants who refuse to accept cash, effective from October 1. According to the government, around 600,000 people in the country lack access to electronic services, and their rights need protection. Norway's Ministry of Justice and Public Security has recommended that citizens keep some funds in cash, highlighting the vulnerability of digital payment systems to cyberattacks.
Norwegian Minister of Justice and Public Security, Emilie Mehl, remarked that "if no one accepts cash and pays with it, in a crisis, it will no longer be a viable solution." She stated that in the event of extended power outages, digital failures, or attacks on payment systems, cash would become "the only available alternative."
The decisions made by Sweden and Norway reflect a desire to ensure the resilience of their financial systems amid global tensions and rising threats.
