Back to the complete issue
Thursday, 5 November 2020

Covid has fast tracked Sweden into cashlessness and lawmakers are struggling to manage risks

Sweden is going cashless — whether their central bank is ready or not: In a country where even children’s pocket money is digital, the hidden risks of going completely cashless are at the forefront of lawmakers’ minds. Digital networks failing or cyberattacks could lead to serious problems in the country’s monetary system, meaning that enough physical cash must be printed as a failsafe, Riksbank Governor Stefan Ingves told Bloomberg. The pandemic has only quickened the move to digital transactions and Sweden’s central bank is now studying ways to stay relevant while ensuring citizens have access to real money.

This might necessitate a new definition of legal tender and require banks and businesses “to maintain some form of a minimum capacity” to handle physical banknotes, Ingves said. The country has been forced to fast track the development and introduction of an electronic currency, the e-krona, amid the changing habits.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.