Cash is King Again: Nations Reconsider Digital-Only Future Amid โSecurity & Geopolitical Concerns
LONDON – A growing number ofโฃ countries, including Sweden and the UK, are โreassessing their push towards fully cashless societies, โคspurred by โขconcerns over cybersecurity, financial exclusion, and, increasingly, the potential forโค disruption linked to geopolitical instabilityโฃ – โขparticularly stemming from Russia’s actions. While digital transactions offer convenience, a resurgence โin the use of physical cash is being observed as nations grapple with vulnerabilities exposed by an increasinglyโค digital world.
Expertsโค warn that over-reliance on digital infrastructure creates potential weaknesses exploitable by state-sponsored actors.โ “While an increased technological worldโ comes โwith โฃmore risks,I don’t think people โwould wont to go back to the older system,”โฃ says โNiklas Arvidsson,a researcher at the Centre forโ Financial Crimeโ and โขSecurity at Lundโ University in โSweden. “We need to accept some risk, but overall there is a massive improvement to our lives.”
Sweden, once at the forefront of the cashless revolution, has begun actively working โto protect its cash system after realizing the risks associated with โcomplete digital dependence. This shift comesโ as concerns mount over theโ potential for disruptionโค to payment systems in times of crisis, including those instigated by opposed nations.โ
The UK is also considering the โimplications ofโค a fully cashless society, โparticularly regarding the protection of vulnerableโฃ populations. โ”People haveโ to be careful with their passwords and their facialโ recognitionโข systems. You’ve also โgot to beโข carefulโ not to lose yoru phone and be wary of scams,” Arvidsson โcautions, advocating for a national โawareness campaign to educate the publicโฃ on digital security risks. “I think we should do a nationalโฃ campaign on this toโ boost awareness. Theโข Government should write to every single person making โthemโข aware โof the dangers and risks of banking online. Do we โall wantโฃ to โgo back to using paper โฃto โpay for things? No.”
Arvidsson stresses the โคneed for aโข balanced approach, promoting technologicalโ innovation while concurrently safeguarding the system and supportingโข those who relyโฃ on cash. “My advice wouldโ be โto โhave โa good โbalance in promoting innovation and creative solutions, as well as technological improvements, โฃwhile at theโค same โฃtime safeguarding the system and helping people who rely more on cash. Doing bothโ simultaneously occurring is really โขcritical.”
The renewed focus on โcash represents a pragmatic response to evolving threats, acknowledging that a diversified payment landscape -โค incorporating both digital and physical currenciesโฃ – is crucial for resilience and financial security in an increasingly uncertain world.