Sweden and Norway will not be able to fully switch to cashless payments due to Russian cyberattacks
Kyiv • UNN
Due to the threat of Russian cyberattacks, Sweden and Norway are reconsidering plans to switch to cashless payments. The governments are recommending that citizens have a supply of cash and use different payment methods.
Sweden and Norway are abandoning plans to develop a cashless society due to concerns about possible Russian cyberattacks. This is reported by The Guardian, according to UNN.
Details
It is noted that both countries have developed financial technologies, in particular the Swedish mobile payment system Swish and the Norwegian analog Vipps.
A former deputy governor of Sweden's central bank predicted in 2018 that Sweden would likely become cashless by 2025. The percentage of cash payments has fallen from almost 40% in 2012 to about 10% in recent years.
But Russia's full-scale invasion of Ukraine in 2022 forced the Swedish government to completely revise its defense strategy and join NATO. Norway has also tightened controls on its border with Russia.
In a brochure titled “If Crisis or War Comes,” which will be mailed to every home in Sweden next month, the Ministry of Defense advises people to use cash regularly and to have at least a week's supply in different denominations, as well as to have access to other forms of payment, such as bank cards and digital payment services.
The government is considering legislation to protect the ability to pay in cash. After all, although cash is legal tender in Sweden, some stores may refuse to accept it.
Norway has a law requiring retailers to accept cash, but it has not been enforced due to the growth of cashless payments in recent years. The Ministry of Justice and Public Safety has stated that it “recommends that everyone carry cash due to the vulnerability of digital payment systems to cyberattacks.
Max Brimberg, a researcher at the Swedish central bank, noted that a decrease in the use of cash could be a risk, as cash remains important in a crisis when digital systems may not be available.
Hans Löweng, a professor of defense and security systems science at the Swedish Defense University, however, believes that there is a lack of evidence on whether cash is better than digital payments. Pointing to Ukraine, where digital systems are quite developed even in times of war, he said: “Ukraine is a very good example of moving to the future during a war, not to the past.
