Cashless dreams shattered? Scandinavia re-embraces cash, Ethereum founder Vitalik warns of centralized payment risks.

Digital payments were once the future, but now they have become a national security concern

In the global wave of accelerated digitization, the Nordic countries were once seen as a model for achieving a cashless society. However, with rising geopolitical risks and frequent cybersecurity vulnerabilities, this digital payment revolution is facing a moment of reevaluation. Governments in countries like Sweden and Norway are now not only slowing down the pace of cashless initiatives but are even urging citizens to start carrying cash again to cope with potential crises.

When a cashless society meets a reality storm

As early as 2018, the former deputy governor of the Swedish central bank predicted that the country would completely enter a cashless society by 2025. Now, seven years later, this prediction has largely come true. According to the latest report from the Swedish central bank, only about 10% of transactions use cash, while most people prefer to use credit cards or the local mobile payment tool Swish, jointly launched by six banks.

However, amid the rising threats of hybrid attacks from Russia, the ongoing conflicts in Europe, and increasing concerns about the vulnerabilities of digital payments, Swedish authorities are beginning to rethink the feasibility of a cashless society. From a defense perspective, over-reliance on electronic transactions may instead pose national security risks.

Swedish government: Please be prepared with a week's worth of cash.

In order to enhance the public's ability to respond in times of crisis, the Swedish government sent a guide titled "If Crisis or War Should Come" to households nationwide as early as November last year, urging the public to use cash in their daily lives and to prepare at least a week's worth of cash reserves, suggesting a mix of denominations to "strengthen response capabilities."

The Swedish central bank clearly stated in its report: "In the past, our payment policy prioritized efficiency, but now safety and accessibility must be placed on an equally important level." The government even proposed legislative suggestions requiring certain public and private institutions to accept cash payments to avoid vulnerable groups falling into difficulties when digital systems malfunction.

Norway is also turning to legislate the protection of cash payment rights.

Sweden is not the only Nordic country to experience a policy shift. Norway has also actively promoted digital payments in the past, with its citizens primarily using a mobile payment tool called Vipps MobilePay. In 2024, the Norwegian government officially passed a bill that explicitly states that merchants who refuse to accept cash may face fines, and it recommends that the public hold cash as a backup.

The then Minister of Justice and Emergency Affairs of Norway, Emilie Mehl, stated candidly: "If no one uses cash and no one accepts cash, then when a crisis arises, cash will not be able to serve any emergency purpose."

Vitalik: The blockchain must have the ability to play the role of "digital cash backup".

Regarding the phenomenon of Nordic countries returning to cash, Ethereum co-founder Vitalik Buterin also expressed his views. He stated on social media: "Nordic countries are reconsidering their cashless policies because their centralized implementation methods are too fragile, and cash remains a necessary backup. Ethereum must possess sufficient flexibility and privacy to play a trustworthy role in such situations."

Vitalik's words point out the potential value of blockchain in the future financial system. He suggests that decentralized networks like Ethereum, if they can further enhance privacy protection and censorship resistance, may become a new generation of emergency financial tools beyond cash.

The digital future is still promising, but one must not lose sight of the fundamentals.

The reflections from Northern Europe remind us that while digital finance holds promise, it should not be entirely relied upon. When crises arise, the physicality and anonymity of cash still hold irreplaceable strategic value. At the same time, it highlights the key role of blockchain and decentralized finance (DeFi) in providing reliable, censorship-resistant financial infrastructure.

Perhaps the real future is not a completely cashless society, but a flexible and optional mixed payment system—allowing people to enjoy the convenience of technology while also having means of self-protection in critical moments.

Is this article about the dream of cashless society shattered? Nordic countries are re-embracing cash, Ethereum founder Vitalik warns about the risks of centralized payments. First appeared in Chain News ABMedia.