The Riksbank, Sweden’s central bank, has urged public and private sectors to strengthen the resilience of the country’s payments market. Governor Erik Thedéen emphasized that Sweden’s reliance on an almost entirely digital payments system poses risks, particularly in light of a deteriorating security environment. In the recently released Payments Report 2025, the Riksbank highlighted the need to improve offline payment capabilities, such as card payments without internet access, to ensure stability.
Declining n
Cash Usage and Legislative Proposals
The Payments Report 2025 noted the continued decline in cash usage, with only one in ten purchases made with cash. The Riksbank has called for new legislation to maintain the availability of cash. It also proposed measures like capping cash transactions to combat the criminal economy. The Swedish parliament and government have been urged to strengthen cash infrastructure to ensure its role in contingency planning and support for vulnerable populations.
Addressing Financial Exclusion
The Riksbank identified financial exclusion as a pressing issue, with many individuals, including refugees and researchers, unable to access basic banking services. Without a payment account, these groups face significant challenges in participating in society. Banks often deny accounts due to strict anti-money laundering and anti-terrorist financing regulations. The central bank highlighted the need to balance these regulatory concerns with ensuring broader access to basic financial services.
Geopolitical Challenges and NATO Membership
Sweden’s focus on payments security is partly driven by geopolitical tensions, including Russia’s invasion of Ukraine. Having joined NATO in 2024, Sweden is now prioritizing civilian and military preparedness, aligning with similar efforts in neighboring Finland. A European Commission report emphasized the critical importance of a secure payments system, warning that disruptions could have severe societal and economic consequences.
Public Awareness and Civil Defense
As part of its civil defense strategy, the Swedish government has encouraged citizens to use and store cash. In November 2024, every household received a pamphlet titled In Case of Crisis or War, advising people to keep enough cash for at least one week. The initiative reflects concerns over the vulnerabilities of a cashless society, particularly in the face of potential cyberattacks or geopolitical instability.
