Sweden’s ambitious plan to become a cashless society by 2030 has faced a significant reversal amid concerns over national security and economic resilience. Once celebrated for having the lowest cash circulation relative to GDP in the world, the country is now urging its citizens to retain and regularly use physical currency as a safeguard against potential disruptions.
This shift in policy came in the wake of Russia’s invasion of Ukraine, which heightened fears of hybrid attacks, including cyber disruptions and power outages that could cripple electronic payment systems. In response, Sweden’s central bank, the Riksbank, recommended that each adult keep around 1,000 Swedish kronor (approximately £80) in cash at home. The government also distributed a brochure titled "If Crisis or War Comes" to households nationwide, encouraging regular use of cash to strengthen preparedness.
Riksbank Governor Erik Thedeen emphasized the seriousness with which Sweden views the threat of hybrid warfare, asserting the importance of securing both military and civilian infrastructure. “We should do whatever it takes to safeguard Sweden in various aspects,” he said, noting limited resistance to the renewed focus on cash.
In July, a new regulation required essential retailers such as grocery stores and pharmacies that have staffed checkouts to accept cash payments. Despite this, most Swedes have so far demonstrated a strong preference for digital transactions. Riksbank data shows that in 2025, only 5 percent of consumers used cash for their last in-store purchase, down from 10 percent in 2023 and 40 percent 15 years ago. This trend aligns with patterns across the Nordic region, where cash use remains minimal—2 percent in Norway and 8 percent in Denmark.
The transition has been met with mixed reactions from businesses and consumers. Stefan Blomvurst, a Spanish deli employee in Stockholm, expressed frustration at the cash requirement. “We don’t handle cash but now the law says we should. Annoyingly,” he said, pointing to the logistical and security challenges that come with handling physical money in a small specialty store. Most of the deli’s customers pay by card or mobile payment, and he admitted that despite the warnings, he personally rarely handles cash.
Governor Thedeen recounted a recent experience during a supermarket visit when a card payment system failure forced the cashier to accept cash. As the only customer in line with cash, he was able to complete his purchase, underscoring the value of maintaining some currency on hand for emergencies.
Sweden’s situation contrasts with Ukraine’s experience under wartime conditions. The National Bank of Ukraine reports that about 90 percent of card transactions remain cashless, suggesting a growing trust in digital payments even amidst conflict. Thedeen noted that while Ukrainians initially increased cash withdrawals during the war, overwhelming reliance on physical currency proved impractical, leading to greater adoption of electronic payments.
Despite the official push to maintain cash, many Swedes remain firmly committed to digital methods. Anna Chotigasatien, a 41-year-old doctor, said she rarely uses cash, citing convenience and lower risks associated with cards. However, she acknowledged potential drawbacks to a fully digital economy, especially as new technologies and uncertainties emerge.
The debate over cash use also reflects broader social concerns, particularly regarding the elderly and rural populations who are more reliant on physical currency. In Sweden’s general elections last month, the right-wing Sweden Democrats campaigned against a cashless society, advocating for expanded acceptance of cash by merchants and banks.
According to a September 2025 Riksbank survey, nearly half of respondents viewed the decline of cash as a negative development, a significant increase from previous years. Opposition to the disappearance of cash was stronger among those living outside major cities and older age groups, illustrating a divide in attitudes shaped by geographic and generational factors.
An elderly Swedish man summed up the argument in favor of cash succinctly: “When something is based on electronics, it will break sooner or later.” The ongoing dialogue in Sweden underscores the complex balance between embracing technological progress and preserving the resilience offered by traditional payment methods.