Why Sweden is abandoning its cashless society

Sweden is reversing its march toward a cashless society after security concerns exposed by Russia’s invasion of Ukraine highlighted the vulnerability of electronic payments. The country, long a leader in mobile payments via Swish and once predicted to be cash-free by 2030, has seen cash use plunge - only 5% of in-store shoppers paid with cash in 2025 versus 10% in 2023 and 40% 15 years earlier. The Riksbank urged adults to keep about 1,000 kronor at home and the government sent a preparedness pamphlet to households; in July a law forced essential shops such as grocers and staffed pharmacies to accept physical cash. Riksbank governor Erik Thedeen frames the move as a resilience measure against hybrid attacks and has publicly demonstrated cash use when card systems failed.

Public response is mixed: many consumers and businesses remain committed to digital payments and see cash handling as costly and unsafe, while older people and those outside big cities disproportionately support cash retention. Some shops are installing coin-counting machines to comply, and small retailers complain about the burden. Political pressure from parties pushing for cash access and a Riksbank survey showing nearly half of respondents viewing the decline as negative reflect rising concern. Ukraine’s wartime shift - initial cash withdrawals then adaptation to electronic systems - provides a cautionary example but Sweden’s policy change prioritizes readiness over rapid digitization.