Sweden and Norway rethink cashless society plans over Russia security fears

[240B]

Sweden and Norway rethink cashless society plans over Russia security fears

The Guardian
Miranda Bryant
Wed 30 Oct 2024

Sweden and Norway are backpedalling on plans for cashless societies over fears that fully digital payment systems would leave them vulnerable to Russian security threats, and concern for those unable to use them.

A combination of good high-speed internet coverage, high digital literacy rates, large rural populations and fast-growing fintech industries had put the Nordic neighbours on a fast track to a future without cash.

Swish, a mobile payment system that six banks launched in 2012, is ubiquitous in Sweden, from market stalls to coffee shops and clothes stores. The Norwegian equivalent, Vipps, which merged with Danish MobilePay in 2022 to form Vipps MobilePay, is also very popular. Last month, it also launched in Sweden.

The former deputy governor of Sweden’s central bank predicted in 2018 that Sweden would probably be cashless by 2025.

But Russia’s invasion of Ukraine in 2022 and a subsequent rise in cross-border hybrid warfare and cyber-attacks blamed on pro-Russia groups have prompted a rethink.

...

“That’s something that we as a central bank and also the central government see as a potential risk, especially for the people who still haven’t adopted the digital economy and also for preparedness if there were to be a weaponised attack or armed attack against Sweden or a close country,” he said. “So cash fills a very specific role in the payment system, both because it’s issued by the state but also because it’s the only form of payment that we can use if the systems for electricity or communications networks don’t work as they usually do.”

Because all Swedish payment systems were part of one ecosystem, an attack could bring society to a standstill, he said.

(more)
https://www.theguardian.com/world/2024/oct/30/sweden-and-norway-rethink-cashless-society-plans-over-russia-security-fears

[libertybele]

Going cashless is not the brightest idea; during hurricanes and storms many stores have no way of processing credit or debit cards, so cash is king.