Sweden Considers the Future

On 1 January 2021, a new law came into effect in Sweden intended to secure access to cash and payment services.

It requires banks that operate in Sweden with deposits over SEK 70 billion and which offer payment accounts to companies and consumers, to provide locations for cash withdrawals and daily taking deposits to an ‘adequate extent throughout the country’. The definition of ‘adequate’ is defined in regulations rather than in the law.

In December, the Ministry of Finance announced that it is appointing a special investigator to review the role of the state in the payments market. Technology, particularly digitisation, means that the financial and payment markets have changed significantly.

This is not a quick review. It is to report back no later than 30 November 2022, since its scope is broad. It must consider what the payment market looks like, including its regulation, and assess how this will change in the future. It is tasked to look at Sweden and abroad. Its review of the payment market must establish who is responsible for what and look at what the state’s future role should be. Within this, it is to propose what the definition of legal tender should be, and whether it is even needed.

Given the central role of payments for a country, this review will suggest whether constitutional or other changes are needed and, if they are, what these should be. Within this falls the need for a future Central Bank Digital Currency.

A big and important undertaking. No wonder the Riksdag is creating a group, drawn from all political parties, to be attached to the investigator.