Sweden considers cashless society

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investorzzo's picture
investorzzo
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Sweden considers cashless society

The game is up if this happens. All those that had the Swiss as being neutral, will no longer be able to hide there wealth there.

Sweden may be a member of the European Union, but to date it has opted not to join the EU’s currency union. If some people in Sweden have their way it may never be necessary to join the currency union, since they would rather see all coins and bank notes replaced with debit and credit cards.

http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=13953

Diogenknees's picture
Diogenknees
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Re: Sweden considers cashless society
investorzzo wrote:

The game is up if this happens. All those that had the Swiss as being neutral, will no longer be able to hide there wealth there.

Sweden may be a member of the European Union, but to date it has opted not to join the EU’s currency union. If some people in Sweden have their way it may never be necessary to join the currency union, since they would rather see all coins and bank notes replaced with debit and credit cards.

http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=13953

 

Am I the only one confused by the above statement ? What have Swiss banks got to do with Sweden?

Johnny Oxygen's picture
Johnny Oxygen
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Re: Sweden considers cashless society

They both start with SW?

investorzzo's picture
investorzzo
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Re: Sweden considers cashless society

Sweden and Switzerland are two countries that often get confused with each other. My bad.

Diogenknees's picture
Diogenknees
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Re: Sweden considers cashless society
investorzzo wrote:

Sweden and Switzerland are two countries that often get confused with each other. My bad.

 

By whom? How could one confuse Sweden =Blondes,  with Switzerland= Cuckoo ClocksWink

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Ken C
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Re: Sweden considers cashless society
investorzzo wrote:

Sweden and Switzerland are two countries that often get confused with each other. My bad.

Sounds like a "senior moment" to me Embarassed

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silvervarg
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Re: Sweden considers cashless society

Removing cash completely in Sweden has not been seriously debated (at least not anything that has been big in Swedish media).

What has been debated is how to decrease the amount of cash and also the number of cash.
The number of cash is really most of the cost for society, so by decreasing the small bills and removing the small coins is really a cost saving.

The latest move was to remove the smallest coin "50 öre" (roughly equal to 5 euro cents).
The has also been talk and some actions to add a "2 kronor" coin (abot 20 euro cents) and change the 20 kronor bill (about 2 euro) for a 20 kronor coin. In the euro the most valuable coin is the 2 euro.
Due to wear and tear it is less costly to have a coin than a bill, but in Sweden most people like the 20 kronor bill.

Today it is common to charge extra fees when paying small amount with credit card. This has been challenged a lot, resulting in a ban to put this fee (from the credit card companies) on to the customer. The result so far is that quite a bit of companies that sell a lot of cheap items has stopped accepting credit cards and accept cash only!

Overall the use of credit cards is increasing quite rapidly, so the removal of cash might enter the agenda for real, but I would guess it will take at least 10 years before we even consider this.

There was a major attempt to put in a "cash card", implemented at a chip on a card was launched nation wide a few years ago. That attempt failed misserably.
One neigbour country (Denmark) made another interesting move againt the major credit cards (Visa/Mastercard/American Express) many years ago due to the high fees these companies charge. The national banks went together and introduced a national creditcard with very low fees. The card is only usable in Denmark and you more or less have to be a citicen of Denmark to be able to get one of these cards.
This national creditcard has been a great success and is used more and more each year. Due to the low fees it really is a good alternative to cash.

Americans traveling anywhere in Euroupe will surely notice that the American Express is the least accepted of the major credit cards, so if you do travel around a bit make sure you have at least one more creditcard. 

aggrivated's picture
aggrivated
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Re: Sweden considers cashless society

All seriousness aside, the same could happen in the USA.  It costs more to mint a penny than its worth.  I would like to see coinage by oz of metal.  1/10 oz gold or siver or copper coins would be worth having.  Of course I'm having another Sunday afternoon nap dream.  Who would have ever thought we might trade with one another by oz of metal rather than fiat currency or even just legal tender?  Here's a start--http://www.silverandgoldaremoney.com/   I've heard they're working on an I-phone ap. 

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Tapani
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Re: Sweden considers cashless society

I would say it is going to that direction here, slowly, and without any debate.

This push is done by treating cash as a lesser form of money, something "outside" the system. Some examples on how this push is done:

Small businesses accepting cash as a payment are (from 1st of July) slapped with extra fees by law ("kassaregisterlagen") for doing so, and also have to give the goverment a (cryprographically signed) log of every purchase made. In many cases, they also needs to log by whom ("bokföringslagen").  It was suggested that in three years you have to show id, and have your citizen number to be logged when you use cash - but I don't think that suggestion passed (yet?).

If you want to deposit cash at a bank, they will by law have need your id and citizen number, and a proof that the money is yours ("lagen om penningtvätt"). It is so absurd that you cannot withdraw money at the bank and immediately deposit it back! The withdrawal receipt is not good enough as proof that the money is yours!

Under some conditions any cash found on you can be confiscated by the state (for instance, if you have a criminal record, or have been abroad lately), and you cannot prove that the money is yours.

All those are pushes initiated by the goverment. The private sector has responded with less opportunities to pay with cash for public transportation, parking, etc.

My main concern with the development is the lack of privacy - all electronic money transfers have to (by law) contain your citizen number and id. Logs of all bank transfers are also handed out to other states, like to the US with the SWIFT agreement.

outback101101's picture
outback101101
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Re: Sweden considers cashless society

In reguards to Sweden becoming cashless, I have only one thing to say, " Rev 13 "

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Johnny Oxygen
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Re: Sweden considers cashless society
outback101101 wrote:

In reguards to Sweden becoming cashless, I have only one thing to say, " Rev 13 "

Yeah! Rev 13...er...huh?

koyaanisqatsi's picture
koyaanisqatsi
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Re: Sweden considers cashless society

It's a Biblical reference to a totalitarian state that prevents its citizens from buying or selling without posessing the mark of the beast. Prophecy, you know.

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james_knight_chaucer
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Re: Sweden considers cashless society

This is scarey. It reminds me of the story 'The day the dollar died'. 

http://johngaltfla.com/blog3/2009/11/18/the-day-the-dollar-died/

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goes211
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Re: Sweden considers cashless society
james_knight_chaucer wrote:

This is scarey. It reminds me of the story 'The day the dollar died'. 

I am a big fan of that series.  That link is only to the first installment.  Here is a link to the complete serial for anyone that is interested in reading a fictional take on a US currency collapse.

http://johngaltfla.com/blog3/2009/11/18/the-day-the-dollar-died-a-blovel...

Johnny Oxygen's picture
Johnny Oxygen
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Re: Sweden considers cashless society
koyaanisqatsi wrote:

It's a Biblical reference to a totalitarian state that prevents its citizens from buying or selling without posessing the mark of the beast. Prophecy, you know.

So would the 'mark' be like a cool tattoo or is talking about German Marks?

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