Political decisions needed urgently so that everyone can pay

In view of the changing payment landscape in Sweden, the Swedish Ministry of Finance conducted a study on the current payment ecosystem and on the role of the Swedish state in such earlier this year. The results of the study triggered some proposed targeted amendments to numerous Swedish acts and regulations as outlined in the two enclosed statements.
The Swedish Central Bank Riksbank has now published a response to the study and the proposed measures. The key views of Riksbank are briefly summarized below:
1. Safeguarding the status of cash: Riksbank emphasizes the importance of legislation to safeguard the status of cash and access to cash services. This is even more so important, as digital transactions and digital payments are subject to cybersecurity issues and system outage risks. The Central Bank therefore proposes prompt legislative amendments to ensure the possibility of paying cash for essential goods and an obligation for banks to accept cash deposits from consumers.
2. Inclusion on the payment market and the offering of accounts with limited functionalities: Riksbank further stresses the importance of ensuring that ALL consumers and companies have access to payment accounts with related payment services. In this context, it also advocates for credit institutions to offer payment services adapted to consumers who have difficulties using digital services. Such services must be offered at reasonable prices, and if not, legislation must be laid to ensure such. Moreover, the Central Bank supports requirements of banks to offer accounts with limited functionality where money laundering risks are elevated.
3. Offline digital payments: Riksbank calls for close collaboration between card companies, payment service providers, retailers, and the state to develop secure and standardized features for offline digital payments. If voluntary efforts are insufficient, the Central Bank suggests considering regulation in this area. As noted under (1) such offline functionalities are highly needed, particularly due to the increased risks of cyberattacks, fraud, and system disruptions.
4. Preparation for an e-krona: The Central Bank emphasizes the need to begin preparations for a possible e-krona, citing global market developments and the work of the European Central Bank and the European Commission on digital currencies. It is important, so Riksbank, to be prepared in the event neighboring states adopt a digital currencies that may impact the payment system in Sweden.
5. Modernization of the payment market: The Central Bank advocates for modernizing the Swedish payment market, including the development and regulation of instant and cross-border payments in Swedish kronor in line with proposals in the EU/EEA. Also, Riksbank calls for a review of existing payment laws in view of potential disruptions during war or the threat of war.