Financial institutions all over the world would love to see entire countries go cashless. Without banknotes and coins to deal with, the banks will gain even more control. Sweden, a country where cashless has become the new normal, may soon get rid of notes and coins altogether. However, there is some opposition to this development as well. It is unclear what all this means for cryptocurrencies.
It is a public secret Swedes do not like using cash. Neither bills, nor coins are all that popular in the country right now. For some people, this seems like a positive development. Others, such as the Swedish Central Bank, are concerned over this development. More specifically, it will threaten the current financial infrastructure and undermine the payment system. As such a push to improve cash use is direly needed.
Sweden’s Cashless Preference is a Problem
Solving this unique problem is not easy. Without base cash volume, the infrastructure cannot be maintained. The bank is mainly concerned over the cars, vaults, and other tools designed to store large amounts of money. Those will become completely useless if cashless becomes the new normal in Sweden. Especially the more populated regions may completely lose access to cash. It is far from an ideal situation that needs to be addressed sooner rather than later.
In times of crisis, going cashless is anything but ideal. In fact, the Swedish central bank thinks it is necessary to have access to cash at all times. The declines in cash usage will be part of an upcoming report published by a parliamentary committee. It is evident this trend is of great concern to all parties involved. There are drawbacks to a cashless society, just like there are in a cash-heavy society.
The question remains what all of this means for Bitcoin and other cryptocurrencies. This new form of money is also cashless. However, it allows consumers to remain in control at all times without too many problems. Whether or not this will effectively push more people to cryptocurrencies, remains to be seen. For now, the cashless trend needs to be curbed in Sweden soon. Whether or not these efforts will be successful remains to be seen.
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