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October 22, 2019

Transition to the cashless society in Sweden is too fast

cashless paymentThe transition of Sweden to the cashless society is too fast and need a new regulation to ensure that cash will continue to be accepted, and the central bank will retain some control over payment systems, according to the Central Banker Stefan Ingves.

Sweden is among the countries in the world where least cash money is used and many shops, restaurants and even bank branches refuse to accept cash payments. For just over 10 years Sweden halve the money in circulation to 50 billion SEK (6.14 billion USD) to 112 billion SEK earlier.

“In fact, if nothing is done, Sweden is headed for a situation in which all means of payment are provided and controlled by commercial organizations. At the same time we observe the emergence of any kind of e-currency”, said Stefan Ingves.

Swedish banks have developed Swish, a mobile application that allows customers to send money and make real-time, non-tax payments throughout the day, using only their phones. Over 60% of Swedes use the application and its widespread spread has accelerated the decline in cash transactions.

The central bank is currently testing E-krona, a digital version of state-guaranteed cash, but Ingswes urged legislators to protect the long-term status of the Swedish krona, partly by requiring banks to use available cash.

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