What Drives Swedish Cashless Economy?
Sweden has ardently embraced cryptocurrencies ever since the inception as the country has been the largest FinTech hub in Europe and now streaming at the forefront of the cryptocurrency revolution.
Well, as the country is among the spearheads in the global cryptocurrency market, the retail payments in Sweden are now almost entirely cashless. Sweden’s entire payments market would now be reliant on the private financial sector, that’s without even a central bank digital currency (CBDC).
In Swedish economy today, cash circulation forms just 1% of the country’s GDP.
The renowned Swedish economist and journalist Cecilia Skingsley authored “If cash stopped working, it would leave all individuals to rely on the private sector for access to money and payment methods. It would be a historical change without precedence.”
Manifestly, the cash transactions are not accepted among Swedish retailers at all. Advanced and cashless technologies have been emerging, instant adoption by payment platforms and even cryptocurrencies are clear evidences.
While trade settlements are also equipped by the central bank’s real-time gross settlement system.
Skingsley mentions “Swedes could therefore find themselves in a situation where cash is no longer generally accepted as a means of payment.”
New technologies have placed in the public arena the possibility of debating whether a country and users stop using a means of payment in cash, of course there are questions that can throw light on the possible negative things that bring this idea, the blockchain-bitcoin technology can help generate confidence in users who investigate new technologies, only time will tell what can be the way to the possibility of eliminating or minimizing the use of cash.
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