With the current state of pandemic throughout the world, many countries have started taking precautionary measures against physical contacts. Many shopkeepers from around the world have put signs outside their shops saying ‘No Cash Accepted’.
There were many countries from around the world that had already started their transition from paper cash to cashless money. But the pandemic has resulted in the cashless transactions to see a significant increase in volume.
Countries like Australia have started encouraging their citizens to start making transactions through cashless mediums than the physical currency. However, there are some countries, who had already shifted to the cashless system entirely but are now showing results that seem concerning.
Zimbabwe and Sweden are the two countries that have 90% transitioned from physical money to cashless and are ahead of any country. Both countries in their initial phases of the transition stated that they were seeing a significant growth in their population moving from physical cash to cashless. Therefore, they decided that it would be wiser to adopt the cashless system entirely.
When it comes to Sweden, the cashless adoption rate has been very high as compared to Zimbabwe. Riksbank, which is a Swedish Central bank recently made an announcement that the number of physical cash users has decreased from 40% to 13%.
The recent reports suggest that at present, even the public lavatories and panhandlers are running on card payments or mobile payments (Swish).
However, both countries have reported one big obstacle that would eventually ensure that the paper money demand would never go away. This major problem is identified to be with the people living in the rural areas, elderly people, and people with a migrant background.
It has been found that these groups find it difficult to handle their payments electronically and would eventually be left behind. However, one of the most popular political parties in Sweden requested to pass a law that would require the major Swedish banks to keep printing paper money.
This adoption would help the elderly, migrant and rural people to keep making transactions through paper-money.