TestCloud
Prep • Practice • Perform
Log In

Sweden Becomes the World's First Officially Declared Cashless Society.

International | Dated: 08 Nov 2025

Sweden has officially been declared the world's first cashless society, according to its central bank, Sveriges Riksbank. The total amount of cash, including banknotes and coins, circulating in the country is now less than 1% compared to Sweden's Gross Domestic Product (GDP). The rapid shift was driven by the widespread use of digital payment apps like Swish, high internet penetration, and strong public trust in the financial system. The milestone highlights a major transition in global finance, although it also raises debates about financial inclusion and digital security.

🎯 Key Highlights:

  • Sweden is the first country to be officially declared a cashless society.
  • Cash in circulation is now less than 1% of Sweden's GDP.
  • The transition was largely driven by the use of the digital payment app Swish.

💡 Other Important Facts:

  • The Riksbank is exploring issuing a digital currency, the e-krona.
  • Many banks in Sweden no longer accept or dispense physical cash.
  • The high penetration of digital IDs and mobile banking facilitates the transition.

📚 Test Your Knowledge:

Which country has become the world's first officially declared cashless society?

Correct Answer: Sweden

🚀 Quick Recap:

About Cashless Economy

  • (i) Central Bank: Sveriges Riksbank (ii) Key App: Swish (digital payment)
  • (iii) Challenge: Financial exclusion for the elderly and digitally illiterate. (iv) Benefit: Reduced money laundering and increased transparency.