Swedish Riksbank emphasizes crucial role of cash for secure and accessible payment systems


The Swedish Riksbank’s recent report emphasizes the crucial role of cash in ensuring secure and accessible payment systems. This represents a shift from their previous strategy of aiming to become a cashless society within the next decade. The Riksbank acknowledges the lessons learned from the country’s experiences with digital payment methods, prompting them to recognize the need for cash in maintaining stability and reliability during unforeseen events.

Swedish Central Bank highlights limitations of digital payment systems

The Swedish Central Bank emphasizes that digital payment systems lack the necessary stability and resilience during unforeseen events such as power outages or cyber-attacks. In contrast, cash remains functional in such situations and ensures reliable payment processing. Therefore, the Riksbank emphasizes that both the public and private sectors must ensure the use of cash and maintain the corresponding infrastructure.

Limited accessibility of digital payment methods poses challenges for all

One of the shortcomings of digital payment methods is their limited accessibility for all population groups. Some people do not have access to digital services or struggle to use them. On the contrary, cash can be used by anyone without any prerequisites and is thus accessible to all. The Swedish central bank concludes from this that cash should remain a integral part of the payment mix in the future and demands an appropriate legal framework for it.

G+D advocates for digital central bank currencies as complement to cash

Giesecke+Devrient (G+D), a Munich-based SecurityTech company, views the arguments put forth by the Swedish Riksbank as a strong endorsement for the introduction of digital central bank currencies (CBDCs) as a complement to cash. These digital currencies combine the benefits of cash with the advantages of digital payment methods. They remain functional even during power outages or internet failures, providing a reliable alternative to cash.

G+D supports Swedish Riksbank’s stance on complementing cash and digital payment methods

G+D acknowledges and supports the Swedish Riksbank’s clear stance on the complementarity of analog and digital payment methods. The introduction of digital central bank currencies is seen as a crucial step towards preserving the advantages of cash in the digital world. The Riksbank is already working on the E-krona as a CBDC for Sweden, while the European Central Bank is pushing forward with the development of a digital euro. These projects are in an advanced stage and could be introduced in the coming years.

The Swedish Riksbank emphasizes the indispensable role of cash in secure and accessible payment systems. While digital payment methods have limitations in terms of security and accessibility, the Riksbank calls for the coexistence of cash and digital payment methods, supported by a corresponding legal framework. G+D sees this statement as a strong argument for the introduction of digital central bank currencies (CBDCs), which combine the benefits of cash with the advantages of digital payment methods. CBDCs provide security and stability even in unforeseen situations and are accessible to all population groups.

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