Sweden Needs Offline e-Cash Amid Russia-Ukraine War
The Ukraine-Russia War has prompted Nordic countries, particularly Sweden, to reconsider their cashless payment systems due to concerns over hybrid warfare and cyberattacks that could disrupt critical infrastructure. The Swedish government advises citizens to keep cash on hand for emergencies, as the country has the lowest cash circulation relative to GDP globally. Digital payments dominate in Sweden, but reliance on internet access and electricity poses vulnerabilities. Policymakers are exploring offline digital cash options, with global interest from institutions like the Bank of England and the European Central Bank. Challenges include technical feasibility and the double-spend problem in digital transactions. Blockchain technology may offer solutions for secure offline transactions, but privacy-enhancing tools are not yet ready for widespread use. The decline of cash disproportionately affects vulnerable populations, raising questions about the inclusivity of a cashless society.
