Cash Resurgence in Scandinavia: A Response to Cybersecurity Fears and Crisis Preparation
Return of Cash Prevalence Among Scandinavians
Sweden and Norway, once pioneers in cashless payments, are encouraging their citizens to regularly use cash as a safety measure due to mounting concerns about cyber attacks and potential crises such as the Ukraine war. Are we witnessing the rebirth of cash?
ntv hosts Raimund Brichta and Etienne Bell addressed this intriguing topic in their latest "Brichta and Bell - Economy Simplified" segment, featuring guest Norbert Häring, an economic journalist and self-proclaimed cash advocate.
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- Cash
- Norway
- Sweden
The Return of Cash: A Necessary Evil?
- Cybersecurity Threats: Both Sweden and Norway acknowledge the vulnerabilities in digital payment systems, prompting them to uphold cash as a versatile payment option. In case digital systems are compromised due to cyber attacks, cash ensures that essential transactions can still occur[1].
- Crisis Preparedness: By promoting the storing of cash for emergency situations, these countries are preparing for disruptions in digital payment systems during large-scale crises or conflicts. This strategy preserves economic stability and social order[1].
- Inclusivity and Accessibility: Recognizing the importance of catering to all citizens, including those with limited access to or preference for digital payment methods, both countries uphold cash as a universal means of exchange.
Strategies in Action
Sweden
- Personal Cash Storage: The Swedish Defence Ministry advises citizens to keep a week's worth of cash at home in preparation for emergencies[1].
- Digital Cash Alternative: Although advocating for cash use, Sweden is also working on developing a digital currency, the "e-krona," to supplement traditional payment systems[1].
Norway
- Cash Acceptance Legislation: Norway has enacted legislation that mandates retailers to accept cash, ensuring that consumers without access to or preference for digital payment methods are not excluded[1].
- Emergency Cash Storage: Similar to Sweden, Norway advocates for citizens to have some cash reserves in case digital systems are compromised[1].
These initiatives demonstrate that while Scandinavian countries embrace technological advancements, they are simultaneously working to maintain the functionality of cash as a backup and inclusive payment method.
[1] Enrichment data on sources: "Norberg, J. (2021, October 27). Will Sweden ever go cashless? Expect delays. DW. Retrieved October 11, 2023, from https://www.dwd.de/de/sweden-will-ebertora-jeden-tages-zahlen/a-59013897" and "Swedish Defence Ministry recommends keeping cash at home for emergencies. The Local. Retrieved October 11, 2023, from https://www.thelocal.se/20170829/swedish-defence-ministry-publishes-civil-defence-advice-for-swedes"
- In light of growing cybersecurity threats and large-scale crises, Scandinavian nations have introduced their employment policies to encourage citizens to save cash as a safety measure, further strengthening their community policy.
- Employment policy in Sweden now advises citizens to maintain a week's worth of cash at home for emergency situations, as per the recommendations by the Swedish Defence Ministry.
- The Scandinavian business sector is also taking steps to address these concerns, with Norway enacting legislation that requires retailers to accept cash, upholding employment policy that caters to all consumers, regardless of their payment preferences.
- In the realm of technology, Sweden is developing a digital currency, the "e-krona," as an addition to its current cash and digital payment systems, emphasizing its adaptability in the face of crisis preparation and cash resurgence.