For years, Sweden was the poster child for the cashless revolution.
With sleek digital payment systems like Swish dominating transactions and just one in ten purchases made with cash, the country appeared to be on the brink of phasing out physical currency entirely. But now, in an era of geopolitical uncertainty, cyber threats, and rising concerns about national security, Sweden is reconsidering its race to a fully cashless society.
The shift in perspective is striking. In November, Sweden’s defense ministry took the unusual step of urging citizens to keep a supply of cash at home, issuing a national brochure titled If Crisis or War Comes.
The guidance warned that digital payment systems could be vulnerable in times of conflict or cyberattacks and encouraged Swedes to use cash regularly to maintain its viability as a backup system.
The concern isn’t abstract. With war in Europe, ongoing unpredictability in the United States, and growing fears of Russian hybrid warfare, Sweden’s reliance on digital payments now looks less like a futuristic advantage and more like a strategic liability. The central bank’s annual payments report underscores this, stating that while efficiency has been the primary focus in recent years, safety and accessibility must now be equally prioritized.
The government is already taking steps to ensure cash remains a functional part of the economy. A December inquiry recommended that some public and private businesses be required to accept cash, a proposal the central bank strongly supports.
The move is a stark reversal from previous years when cash use declined so rapidly that Sweden experimented with its own digital currency, the “e-krona.” That project has since been shelved, and instead of pushing further into digital-only transactions, Sweden is now focused on securing a more balanced approach.
Norway, another leader in cashless payments, is experiencing a similar course correction. Despite the popularity of its own mobile payment system, Vipps MobilePay, the Norwegian government introduced legislation last year that penalizes retailers who refuse to accept cash. Authorities have also urged citizens to keep cash on hand, emphasizing that in an emergency, digital payments could fail—rendering a cashless society dangerously unprepared.
Norway’s former justice and emergencies minister Emilie Mehl summed up the risk plainly: “If no one pays with cash and no one accepts cash, cash will no longer be a real emergency solution once the crisis is upon us.”
