As Nordic countries grapple with the risks of cyberwarfare, they are turning to a traditional payment method: cash. In Sweden and Norway, digital payments are being prioritized for safety and accessibility, leading to a shift towards paper money in the face of rising cybersecurity concerns.
The Rise of Cash in the Face of Cyberwarfare Threats
A customer buys soup from a food truck in Stockholm using the popular Swedish payments system ‘Swish‘.
Photograph: Idealink Photography/Alamy
In 2018, a former deputy governor of Sweden‘s central bank predicted that by 2025, the country would probably be cashless. Seven years on, this prediction has turned out to be remarkably true. Just one in ten purchases are made with cash, and card is the most common form of payment, followed by the Swedish mobile payment system ‘Swish’.
However, with war in Europe, unpredictability in the US, and the fear of Russian hybrid attacks becoming almost a part of daily life in Sweden, life without cash is not proving to be the utopia that it once promised to be. In fact, the authorities are now trying to encourage citizens to keep and use cash in the name of civil defence.
Cybersecurity threats refer to any malicious activity aimed at compromising digital systems, networks, or data.
These threats can be launched through various channels, including phishing emails, malware, ransomware, and SQL injection attacks.
According to a report by the Identity Theft Resource Center, there were over 1,400 data breaches in 2020, exposing sensitive information of millions of individuals.
Cybersecurity threats can have severe consequences, including financial loss, reputational damage, and compromised national security.
In November, the defence ministry sent every home a brochure entitled ‘If Crisis or War Comes,’ advising people to use cash regularly and keep a minimum of a week’s supply in various denominations to ‘strengthen preparedness.’ The central bank emphasizes that measures need to be taken to strengthen preparedness and reduce exclusion so that everyone can pay, even in the event of crisis or war.
The shift towards digital payments has been driven by efficiency, but now safety and accessibility are also being prioritized. In December, the government published the findings of an inquiry that proposed requiring some public and private agents to accept cash – a recommendation that the central bank says the authorities should implement.
This change in approach is not unique to Sweden. Norway, which has a popular equivalent to ‘Swish‘ called Vipps MobilePay, also brought in legislation last year that means retailers can be fined or sanctioned if they will not accept cash. The government has also recommended that citizens ‘keep some cash on hand due to the vulnerabilities of digital payment solutions to cyber-attacks.’
Governments have existed in various forms throughout history, with ancient civilizations such as Egypt and Greece developing complex systems of governance.
The modern concept of government emerged during the Enlightenment period, emphasizing the principles of democracy, liberty, and accountability.
Today's governments are shaped by factors like globalization, technology, and shifting societal values.
According to a survey by Pew Research Center, 87% of countries have a democratic form of government, while 13% are authoritarian or hybrid regimes.
Ultimately, when it comes to emergency planning, even the world’s two most cashless societies are still banking on cash.
