Cashless: Did Sweden Go Too Far?

Sweden is widely regarded as the most cashless society on the planet, with most of financial institutions no longer handling cash, and many shops, museums and restaurants only accepting plastic or mobile payments. But, today's MSN Money reports on the downside of going cashless, since many people, in particular the elderly, don’t have access to the digital society.

Last year, the amount of cash in circulation in Sweden dropped to 40% below its 2007 peak. The declines in 2016 and 2017 were the biggest on record. An annual survey found that only 25% of Swedes paid in cash at least once a week in 2017, down from 63% just four years ago. A full 36% never use cash, or just pay with it once or twice a year.

The trend has government worried. If the disappearance of cash continues at present rates it will be difficult to maintain an infrastructure for handling cash that remains.

In response, Sweden's central bank is considering the need for an official form of digital currency. The idea is that the "e-krona" would work as a complement to cash, not replace it completely. But, some say Sweden should require banks to provide cash to customers.

Management Minute | from the Association of Vermont Credit Unions