Where people can go cashless

To avoid this extreme scenario, cash-processing provider Loomis AB wants regulators to force banks and retailers to continue accepting cash, according to Bloomberg.

The warning from the company comes after Sweden’s central bank, Riksbank, said it was concerned that the rapid disappearance of cash could lead to the disintegration of the infrastructure needed to use notes and coins. It also tasked authorities with promoting a safe and efficient payment system.

Bloomberg Photo

“We need cars, vaults and all that to maintain the infrastructure, and we also need the underlying transaction volume,” said Loomis CEO Patrik Andersson. He added that the most populous areas in northern Sweden are the most vulnerable to losing access to cash. This is worrying because if a natural disaster or technical failure were to occur, Swedes would not be able to buy the necessities to survive.

“Cash is very important in a crisis situation,” said Mr. Andersson. “Swedes may not have a deep understanding of the impact of a crisis spreading throughout the community.”

A parliamentary committee is considering a broader framework for the Riksbank’s plan to publish a special report this summer looking at the challenges of cashless payments. Riksbank Governor Stefan Ingves has called for legal changes to protect the central bank’s payment system amid a growing “disappearance” of cash.

Sweden is moving towards a situation where public payment means are controlled by commercial parties, which could be a problem, especially in a crisis situation, Mr Ingves said.

The amount of cash in circulation in Sweden fell to its lowest level since 1990 last year, and is now down more than 40% from its peak in 2007. The decline in cash use in 2016 and 2017 was the sharpest on record.

As cash usage declines, the costs for shops, restaurants and banks to provide cash services are rising, exacerbating the problem. Bankomat CEO Nina Wenning says the cost of each transaction at ATMs is rising significantly.