Which Is the World’s First Cashless Country?

World’s First Cashless Country: Sweden proudly holds the title of the world’s first cashless country, setting a global example of digital transformation. Almost every financial transaction in Sweden, whether for shopping, travel, or donations, is now done electronically. Reports show that less than 1% of all transactions in Sweden involve cash, making it the most advanced nation in terms of digital payments and financial transparency.

How Sweden Became the First Cashless Country?

The journey toward becoming a cash-free economy started in the early 2000s. Sweden’s robust digital infrastructure, tech-savvy population, and trustworthy banking systems paved the way. When Swedish banks introduced Swish in 2012, a mobile payment app created through collaboration between major banks, it changed how Swedes handled money. People could now send and receive payments instantly using just their phone number. This innovation spread rapidly. Today, even local cafes, markets, and churches use digital platforms like Swish, Klarna, and BankID instead of traditional cash registers.

Government and Banking Support

The Swedish government and Riksbank, the country’s central bank, have been instrumental in promoting a digital economy. They have implemented strong cybersecurity laws and encouraged citizens to adopt contactless cards and e-payment apps for everyday use. Many banks have completely stopped handling physical money, making it almost impossible to withdraw cash in some regions.

The government’s goal is not only convenience but also reducing corruption, black money, and theft, while ensuring financial transactions are fully traceable and secure.

Digital Payment Culture in Sweden

Swedes are now accustomed to living in a cashless society. From street musicians to public transport systems, nearly everyone accepts digital payments. Even flea markets and small vendors rely on QR codes and mobile transfers.

In restaurants, customers often split bills instantly via apps, and taxi services automatically process payments digitally. The shift has made Sweden one of the most digitally integrated and efficient economies in the world.

Interesting Facts about Sweden

1. Less Than 1% Cash in Circulation

Cash now accounts for just 0.5% of Sweden’s GDP, compared to over 8% in countries like Germany or Japan. This means cash is practically disappearing. Most Swedes go weeks or even months without handling a single coin or note. Even ATMs are becoming rare, and many towns have none at all.

2. Churches and Charities Accept Swish Donations

Even spiritual institutions have gone digital. In most Swedish churches, donation boxes have been replaced with Swish QR codes. Worshippers scan and donate instantly, ensuring full transparency. This trend has made Sweden one of the first nations where religious and charitable contributions are fully digitized, showing how deeply the cashless culture runs.

3. “No Cash Accepted” Is the New Normal

Walk into a café, museum, or bus in Stockholm, and you will often find signs that say “No Cash Accepted”. This is not an exception; it is the rule. Most Swedish businesses prefer card and mobile payments because they are safer, faster, and easier to track. As a result, Sweden has significantly reduced petty theft and counterfeit currency crimes.

4. Sweden’s Digital Currency – The e-Krona

To further strengthen its position as a leader in digital finance, the Riksbank is developing e-Krona, a government-backed central bank digital currency (CBDC). The e-Krona aims to provide a secure and official digital alternative to cash, ensuring the entire financial ecosystem remains inclusive and efficient. Once launched, Sweden will become one of the first countries to have a fully operational digital national currency.

5. Inspiring Other Nations

Sweden’s model has inspired other countries such as Norway, Finland, Denmark, China, and South Korea, which are rapidly digitizing their payment systems. China’s WeChat Pay and Alipay have taken over physical cash usage, while Norway aims to be 99% cashless by 2030. The global shift shows that Sweden’s bold move has sparked a worldwide digital payment revolution.

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