Sweden Forges Ahead In Its Quest To Become The World's First Cashless Society

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Image Credit: CC 2.0 via Wikipedia.org

While the U.S. is still debating about getting rid of the humble penny, Sweden is rapidly moving towards abolishing currency altogether. Though this may sound radical, it is a natural evolution in this digital society where a vast majority of transactions are already being conducted using credit or debit cards.

The Nordic country which ironically was the first European country to introduce banknotes in 1661, has just been working harder to convince its residents that digital payments are a safer alternative to carrying cash.

Over the years, the idea has gained popularity with residents, especially the younger generation that is much more comfortable with technology. Today cash is so shunned that many banks don't even have ATM's and some have stopped handling cash altogether!

Photo Credit: qz-com

Tickets to ride public buses in most Swedish cities can only be purchased via cell phones. Numerous businesses are also moving toward accepting only digital payments. Kids now get their allowances on cards and churches circulate a card scanning machine to solicit donations. Even the homeless that sell street paper to make ends meet, had to start accepting this mode of payment! In fact, cash is such a taboo that bank customers carrying "excessive" currency, are reported to ensure they are not engaged in suspicious activities.

It is estimated that there is currently less than 80 billion Swedish Krona (SEK) in circulation. Though that may sound like a lot, it is a sharp reduction from the 106 billion that was in circulation just six years ago! Moreover, it is believed that just 40% to 60% of the currency is actually being used. The rest is tucked away inside bank safety deposit boxes or home safes.

The officials say the key to the success of their strategy lies in a sophisticated payment technology called SWISH. A collaboration between Sweden and Denmark (that is also trying to go cashless), the mobile payment system allows for real-time transactions between individuals, making the use of digital currency very easy and convenient.

Photo Credit: SwedenKredit.com

But despite its growing popularity, there are some holdouts to this "radical" idea, They include elderly people as well as those living in rural areas who are still uncomfortable with mobile phones and computers. Also reluctant are the homeless and undocumented workers that would have to depend wholly on government aid if cash was abolished altogether. But the officials are confident that in the very near future, they will be able to convince everyone to move to this safe and more cost-effective payment system.

Sweden is not the only country trying to abolish paper currency and coins. The movement is rapidly gaining traction in Denmark and Finland as well. In 2014, Israel announced a three-step plan to go cashless and just last week the vendors of a popular street in Sydney declared they would cease accepting currency from customers. Whether this sentiment spreads remains to be seen. But one thing is for sure - With increasingly sophisticated payment systems being introduced every day, pulling out cash is rapidly becoming "uncool."

Resources: guardian.com, alphagalileo.org, cbsnews.com

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296 Comments
  • ajg16
    ajg16Monday, August 13, 2018 at 7:56 pm
    What happens if they get hacked? Or what happens if all electronics to off?? Also I kinda think the U.S. Should get rid of the penny..
    • heyu Monday, December 4, 2017 at 2:24 pm
      i think its cool wonder when the us will do it
      • CactusFriday, September 1, 2017 at 8:49 am
        Hi i think i its bad and should stop it will make live hard
        • jwrocks
          jwrocksMonday, March 6, 2017 at 1:24 pm
          i disagree.
          • samirthehammer
            samirthehammerFriday, March 10, 2017 at 6:42 am
            this actually would work. It just needs some time.
          • CarlosWednesday, May 4, 2016 at 8:29 am
            Lol
            • AlexWednesday, April 27, 2016 at 2:05 pm
              If this happens, the whole economy will come to a complete stop during power outages, making temporary anarchy.
              • megacharizardx
                megacharizardxThursday, December 1, 2016 at 9:28 am
                That's true, also Sweden is more vulnerable to hacking.
              • the mizThursday, April 7, 2016 at 8:53 am
                awsome!!!!!!!!!!!!!!!!!!!!!!!!!!
                • john cenaThursday, April 7, 2016 at 8:53 am
                  cool
                  • MvaWednesday, March 9, 2016 at 11:21 am
                    that is very interesting
                    • ##BlondieWednesday, February 10, 2016 at 6:37 pm
                      It would make it harder to trade with other countries n the world.