Why Sweden Is Rethinking Its Cashless Society—and What Ethereum’s Vitalik Buterin Has to Say
Sweden’s ambitious journey toward becoming a cashless society has been lauded globally. With mobile payment platforms like Swish and widespread card usage, the nation has seen cash transactions plummet to just 10% by early 2025 . However, recent geopolitical tensions and security concerns have prompted a reevaluation of this digital transformation.
The Fragility of a Fully Digital Economy
Sweden’s rapid digitalization has exposed vulnerabilities, particularly in the face of cyber threats. The Swedish Security Service (SÄPO) has identified foreign cyberattacks as significant risks, emphasizing the potential for hostile entities to disrupt digital payment systems . In response, the Riksbank has advocated for legislation to ensure the continued availability of cash, highlighting its role as a reliable payment method during crises .
Ethereum’s Potential Role in Crisis Situations
Ethereum co-founder Vitalik Buterin has weighed in on the discussion, pointing out the limitations of centralized digital payment systems. He suggests that decentralized platforms like Ethereum could serve as financial backstops during times of instability. In a recent statement, Buterin noted, “Ethereum needs to be resilient enough, and private enough, to be able to credibly play this kind of role.” He also acknowledged the challenges, stating that while the technology exists for offline, privacy-preserving transactions, solutions currently depend on trusted hardware and mechanisms to prevent double-spending.
Buterin’s perspective is informed by real-world applications of cryptocurrency. Following Russia’s invasion of Ukraine, Ethereum and other cryptocurrencies facilitated nearly $100 million in aid, demonstrating their utility in crisis scenarios .
The Human Impact of a Cashless Society
While digital payments offer convenience, they can inadvertently marginalize certain populations. In Sweden, vulnerable groups such as the elderly, immigrants, and the homeless often find themselves excluded from the digital economy. Without access to banking services or digital tools, these individuals rely on cash for daily transactions. The phenomenon of “cash bubbles” has emerged, where cash functions as a local currency within certain communities, limiting access to broader services .
A poignant example involves a grandmother who, after saving to buy her grandchild a gift, was unable to complete the purchase because the store did not accept cash. She described feeling “like a thief,” underscoring the emotional toll of financial exclusion.
Balancing Innovation with Inclusion
The experiences of Sweden and Norway illustrate the need for a balanced approach to digital transformation. While embracing technological advancements, it’s crucial to ensure that systems remain inclusive and resilient. Maintaining access to cash and exploring decentralized financial solutions can provide safety nets during unforeseen disruptions.
As societies navigate the complexities of digitalization, the lessons from the Nordic countries serve as a reminder: progress should not come at the expense of inclusivity and security.
