Sweden, which is frequently praised for being well on its way to become a cashless society, experienced a 10% drop in the amount of notes in circulation in 2023, according to a Riksbank report. But this is by no means a widely accepted trend; 44% of Swedes, up from 36% in 2022, expressed disapproval towards the reduction in cash use.

The central bank adds that banks ought to be required to accept deposits of coins and banknotes from individuals, as this is now not the case, in order to help address this.

In addition, the Riksbank has raised concerns over cash management, pointing out that there is presently just one private enterprise in the nation that moves actual currency to and from retail establishments. The research suggests that in the event that the current system fails, the government should put together plans for how Riksbank and commercial banks can guarantee the transportation of currency.

In the meanwhile, financial institutions and other payment service providers must modify their offerings to accommodate those who struggle with digital technologies. The paper makes the case for greater widespread use of technological solutions like biometrics to streamline payments and identity.

The amount of individuals and companies that lack access to payment accounts due to their perception as high-risk clients worries the central bank as well. According to the paper, banks ought to provide more accounts with constrained features instead.

Governor of Riksbank Erik Thedéen states: "Payments have to be equitable for all users. Longer term, all payments might be made digitally, but in the interim, cash is still very much in use. To guarantee that cash can be used for payments, legislation is required.

"More clients' access to payment accounts is something that banks need to make sure of. In order for someone to be able to pay both now and in the future, these are crucial conditions."