Risk of Cash Crunch Leads Sweden to Expand Handling of Banknotes

Rafaela Lindeberg, Bloomberg News

A 50 Swedish kronor note is handed over at a grocery store, near a card payment terminal, in this arranged photograph in Stockholm, Sweden, on Tuesday, Sept. 4, 2018. The next Swedish government, whatever it may be, won’t be wanting for economic hurdles. , Bloomberg

(Bloomberg) -- The central bank of Sweden, one of the world’s most cashless societies, is tripling the number of offices available to handle notes and coins.

Sweden’s Riksbank, responsible for supplying the largest Nordic economy with banknotes, said in a statement on Wednesday it is opening two new locations for cash handling in addition to an existing office.

“To enable cash handling in the event of a crisis or serious disruption to society,” the central bank has decided to open a cash handling office in the city of Jonkoping in the spring and another one in the town of Falun next year, it said.

The Riksbank, which is currently working on a pilot-project to introduce a digital e-krona, is moving steadily toward finding an electronic solution to supplement cash as the usage of physical bank notes dwindles.

During the pandemic, Sweden’s cash usage has dropped to its lowest level ever, as the coronavirus pandemic accelerates the shift toward digital payments. In 2020, less than 1 in 10 of all payments were made in cash, according to a report.

Read more: Sweden’s World Record in Cashlessness Reveals Hidden Risks