Sweden Advocates for Cash Amidst Cashless Trend: Implications for Australia
Despite being one of the most cashless societies, Sweden’s central bank, the Riksbank, is advocating for protections to ensure the continued use of cash in an increasingly digital economy. With only 10% of transactions made with physical currency, there is a significant push to safeguard cash payments in light of recent global uncertainties.
Riksbank governor Erik Thedéen stresses the necessity of maintaining cash for essential services like food and healthcare. He highlights recent power outages in southern Europe that rendered digital payments ineffectual, underscoring the crucial role that cash can play during technical failures or severe weather events. These sentiments echo a recent alert from the Dutch central bank (DNB) urging citizens to keep emergency cash on hand, citing potential disruptions in digital systems.
To strengthen the role of cash, the Riksbank has proposed legislation mandating essential retailers and health services to accept cash, reversing the trend that allows businesses to refuse cash payments, initiated by a 2015 ruling from the Swedish Supreme Administrative Court. The bank also plans to clarify the responsibilities of major banks in relation to cash services, ensuring that small business owners can deposit cash outside traditional banking hours, facilitating better cash management.
The Riksbank argues that the current cash infrastructure is vulnerable and requires immediate legislative action to secure its viability. Norway’s recent move to enforce cash acceptance by businesses may serve as a precedent for Sweden’s initiative.
Australia is closely monitoring these developments, with its government contemplating similar legislation to ensure cash remains an acceptable payment method across essential services. Ongoing consultations with stakeholders aim to address concerns while aiming for implementation by early next year. The Reserve Bank of Australia (RBA) supports this direction, emphasising that maintaining cash access is critical for many Australians who rely on it for daily transactions.
As Sweden’s position unfolds, there is a rising interest in implementing comparable measures in Australia. Public sentiment suggests a desire for more robust measures to ensure financial inclusivity and security in Cash management. Social media reactions convey a sense of urgency for Australia to adopt these protections and align with international trends prioritising cash in a digital age.
In conclusion, as Sweden re-evaluates its approach to cash amidst a declining reliance on it, the prospects for similar legislative frameworks in Australia reflect a growing recognition of the importance of cash as a fallback in financial transactions, advocating for broader access and equal treatment for cash payments across the economy.
