Sweden leads towards a world without cash

¹⁶ It also forced all people, great and small, rich and poor, free and slave, to receive a mark on their right hands or on their foreheads, ¹⁷so that they could not buy or sell unless they had the mark, which is the name of the beast or the number of its name.

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(AP) STOCKHOLM - Sweden was the first European country to introduce bank notes in 1661. Now it’s come farther than most on the path toward getting rid of them.  “I can’t see why we should be printing bank notes at all anymore,” says Bjoern Ulvaeus, former member of 1970′s pop group ABBA, and a vocal proponent for a world without cash. The contours of such a society are starting to take shape in this high-tech nation, frustrating those who prefer coins and bills over digital money.

In most Swedish cities, public buses don’t accept cash; tickets are prepaid or purchased with a cell phone text message. A small but growing number of businesses only take cards, and some bank offices — which make money on electronic transactions — have stopped handling cash altogether. “There are towns where it isn’t at all possible anymore to enter a bank and use cash,” complains Curt Persson, chairman of Sweden’s National Pensioners’ Organization.

He says that’s a problem for elderly people in rural areas who don’t have credit cards or don’t know how to use them to withdraw cash.

“If people use more cards, they are less involved in shadow economy activities,” says Schneider, an expert on underground economies. 

Oscar Swartz, the founder of Sweden’s first Internet provider, Banhof, says a digital economy also raises privacy issues because of the electronic trail of transactions. He supports the idea of phasing out cash, but says other anonymous payment methods need to be introduced instead. 

“One should be able to send money and donate money to different organizations without being traced every time,” he says.

 Most experts don’t expect cash to disappear anytime soon, but that its proportion of the economy will continue to decline as such payment options become available. Before retiring as deputy governor of Sweden’s central bank, Lars Nyberg said last year that cash will survive “like the crocodile, even though it may be forced to see its habitat gradually cut back.”

Andrea Wramfelt, whose bowling alley in the southern city of Landskrona stopped accepting cash in 2010, makes a bolder prediction: She believes coins and notes will cease to exist in Sweden within 20 years. 

“Personally I think this is what people should expect in the future,” she says. 

But there are pockets of resistance. Hanna Celik, whose family owns a newspaper kiosk in a Stockholm shopping mall, says the digital economy is all about banks seeking bigger earnings. Celik says he gets charged about 5 Swedish kronor ($0.80) for every credit card transaction, and a law passed by the Swedish Parliament prevents him from passing on that charge to consumers. “That stinks,” he says. “For them (the banks), this is a very good way to earn a lot of money, that’s what it’s all about. They make huge profits.”