Report: “Cashless Society”
Introduction
This report aims to provide an overview of the development of a cashless society in the
United Kingdom and Sweden. The report brings out the advantages and disadvantages of a
cashless society and gives relevant recommendations.
Development
Cashless society refers to eliminating the use of cash in society and replacing the payment
method with digital options or cards. This includes both the inability to access cash and the
inability to use cash.
The United Kingdom introduced cash withdrawal fees for more than 1700 ATMs in 2019
lowering the number of cash withdrawals. The objective sees to further increase the number
of ATMs that charge transaction fees to move towards digital and card payment.
Sweden has developed digital payment systems such as Swish, which allows citizens to make
payments for almost everything, eliminating the need for cash entirely. Riksbank, the central
bank of Sweden, has also developed ekrona, a digital currency to compete in the digital
revolution in the monetary system.
Cashless societies are developing in Sweden and the United Kingdom rapidly. Since 2009 the
circulation of notes and coins has decreased by 40 percent in Sweden. The BBC stated that in
the past decade in the United Kingdom cash use has decreased by half and further decrease is
expected.
Advantages
The elimination of cash provides numerous advantages in relation to crime, day-to-day life,
and safety.
Cash is untraceable and can facilitate crime, the lesser use of cash has been shown to
decrease crime rates significantly. Crimes such as burglaries or extortion significantly
decrease when physical cash is handled less.
The elimination of cash could simplify everyday transactions, providing an easier way to
manage money. It also simplifies international transactions without having to change paper
currency when traveling.
Introduction
This report aims to provide an overview of the development of a cashless society in the
United Kingdom and Sweden. The report brings out the advantages and disadvantages of a
cashless society and gives relevant recommendations.
Development
Cashless society refers to eliminating the use of cash in society and replacing the payment
method with digital options or cards. This includes both the inability to access cash and the
inability to use cash.
The United Kingdom introduced cash withdrawal fees for more than 1700 ATMs in 2019
lowering the number of cash withdrawals. The objective sees to further increase the number
of ATMs that charge transaction fees to move towards digital and card payment.
Sweden has developed digital payment systems such as Swish, which allows citizens to make
payments for almost everything, eliminating the need for cash entirely. Riksbank, the central
bank of Sweden, has also developed ekrona, a digital currency to compete in the digital
revolution in the monetary system.
Cashless societies are developing in Sweden and the United Kingdom rapidly. Since 2009 the
circulation of notes and coins has decreased by 40 percent in Sweden. The BBC stated that in
the past decade in the United Kingdom cash use has decreased by half and further decrease is
expected.
Advantages
The elimination of cash provides numerous advantages in relation to crime, day-to-day life,
and safety.
Cash is untraceable and can facilitate crime, the lesser use of cash has been shown to
decrease crime rates significantly. Crimes such as burglaries or extortion significantly
decrease when physical cash is handled less.
The elimination of cash could simplify everyday transactions, providing an easier way to
manage money. It also simplifies international transactions without having to change paper
currency when traveling.
