LONDON: According to a new study, Sweden may become the World’s first cashless nation as the country aims in revolutionizing its banking system. The study conducted by Niklas Arvidsson, a researcher at Royal Institute of Technology in Sweden, the country’s growing interest in information technology and the Government’s crack down on organized crime and terror has increased the use of E-payments in Sweden.
“With the increasing use of mobile payment system in Sweden, the country may soon become the first cashless society in the World”, researcher Arvidsson said in the report. “Cash is an important mode of transaction in many countries. But, in the case of Sweden its impact is small and is decreasing rapidly”, Arvidsson added.
According to the report, about 80 billion Swedish crowns are currently in circulation compared to the 106 billion Swedish crowns in circulation, six years ago. Out of the 80 billion Swedish crowns in circulation, the report said that only 40 to 60 percent is in real circulation as the rest of the cash may have been stored in boxes and banks by individuals. This marks a sharp decrease in the use of cash in Sweden. It is believed that this could even go down within the coming years.
Mr Arvidsson said that the collaboration between the Swedish and the Danish banks through Swish, a real time money transferring app between individuals, increased the use of mobile payment apps for even minimal transactions. The researcher added that the country may soon have to change its infrastructure for transactions due to the growth of e-commerce and large-scale transactions through e-payments, the TOI reported.
There are several advantages for using e-transactions to both individuals and the governing agencies. Transactions made through electronic mode can be easily used by the governing agencies to catch suspected tax evaders.