Sweden Reverses Course: Cash Returns as a Matter of Survival, Inclusion and Security

By Frane Maroevic, Director General, International Currency Association

Sweden, once celebrated as the world’s frontrunner in going cashless, is now taking legal steps to safeguard the role of cash in society. Policymakers and the central bank have come to see that physical money is a vital tool for social inclusion and national security.

In its response to the government’s Cash Inquiry, the Swedish Central Bank (Riksbank) has called for urgent legislation to guarantee that everyone can continue to pay in cash.

Governor Erik Thedéen put it plainly: “People should always be able to pay for food, healthcare and medicines both digitally and with cash. The increasingly turbulent global situation, increased cyber attacks and also the major power outages in southern Europe show the importance of being able to make payments even when the internet is down.”

Under the new proposals, supermarkets, pharmacies, health centres, petrol stations and other sellers of essential goods, as well as those charging public fees, would be required to accept cash.

The Riksbank warns that without such obligations, the right to use cash could disappear for many, particularly the elderly, rural residents, and those excluded from digital banking.

The central bank also highlights that everyone in Sweden should be able to pay for and access public services such as healthcare, passports, and ID cards, regardless of their access to digital tools.

This demonstrated the essential role of cash as a social equalizer and a safeguard. When electricity fails or the internet goes down, cash works. In times of power outages, cyber attacks, natural or man-made disasters it is often the only way to buy essential goods or services.

It is also a powerful pushback against the dominant narrative that progress must mean digital-only. Sweden’s policy shift re-centers cash not as outdated, but as critical infrastructure—especially for those left out of the digital economy.

As countries race toward cashless systems, often with little public debate, Sweden’s reversal offers a rare moment of reflection: inclusion and resilience cannot be achieved by technology alone.

The Riksbank is warning that Sweden’s cash infrastructure has become dangerously fragile. The proposed reforms would require major banks to provide reliable cash services, such as daily deposits for businesses and cash deposits for individuals, to keep the cash chain functioning across the country.

The central bank emphasizes that legislative action is needed now to prevent cash from being marginalised to the point where it is no longer usable for essential purchases.

This move is also a clear demonstration that allowing cash usage and acceptance to fall too far can create a downward spiral, where access becomes so limited that only drastic measures can restore its availability.

The country’s new direction serves as a warning to others: if cash is allowed to fade away, the cost and complexity of bringing it back are far greater than maintaining it in the first place.

Sweden’s renewed commitment to cash is reminder that in an era of growing digital dependency and uncertainty, cash remains a cornerstone of both freedom and security.