Era of Paper Money Dies Out in Sweden as Virtual Cash Takes Over

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Was just watching Bloomberg TV tonight, and noticed one of their headlines which caught my eye.  I then found the article on their website:

http://www.bloomberg.com/news/2013-04-10/era-of-paper-money-dies-out-in-sweden-as-virtual-cash-takes-over.html

Interesting read of the article.

IMHO, I do not think Canadian Paper Money is out, just yet. 

Interesting.  I think, in this day and age, coins and bills don't seem to fly anymore, and virtual cash is the route to go.  Coins and bills can be a problem sometimes, and I think the reasons are because:

1) Virtual cash is more environmentally friendly;

2) Virtual cash can cut on printing costs;

3) Virtual cash will help eliminate:

• Counterfeiting

• Organized crime and drug transactions

• Armed robberies

The only thing it won't eliminate is shoplifting, unfortunately.  But that's why shopping malls have to have security guards roaming the floors in virtually all places.

Maybe this is a sign that if Sweden is going the electronic route, maybe other countries will follow suit eventually.  Maybe the Bank of Canada can consider such idea down the road.

That is a great idea, until you have system problems/outages, online theft etc. then old paper money doesn't look so bad.

Or you go to Tim Hortons and both Cashes are "CASH ONLY" right now because the Electronics are down.

The Timmies where I work always has this problem.   I laugh when the "kids" can't use the debit cards and women have no change.

I like cash... may it live long and prosper.

I like cash... may it live long and prosper

I agree 100% ....The government doesn't want people using cash because there is no paper trail...they prefer people using credit to get into debt ...
If everyone only used cash they couldn't spend what they don't have ...
Being an oldtimer...cash is the only way to go...as for criminals ....they will always find new ways whether we go cashless or not...it's part of life....

Yeah...  What tmort and gonkman said.  Took the words outta my mouth.

Considering the US has yet to even move to a $1 coin, things move pretty slowly....

I agree 100% ....The government doesn't want people using cash because there is no paper trail...they prefer people using credit to get into debt ...

I  tend to agree with all the pro-cash society comments here but it drives me nuts how often I'm held up at the grocery store for a $2-$10 debit card transaction. And I mean this is happening on a regular base now so I'm so sure what the future holds in terms of cash & its perceived usefulness.  So while I'm completely "old school" on this topic I wish I could say the same was true for my friends and what I see out there.

I know that if were to use the plastic credit (or debit card which I refuse to get) I would not be in as good a financial position as I am today.  I definitely feel cash & using it (rather than the plastic) makes us reconsider buying stuff all the time. 

The following paper by BoC is an interesting read in this area:

http://www.bankofcanada.ca/wp-content/uploads/2012/11/boc-review-autumn12-arango.pdf

What I don't get is this:

"Canadians also use cash for purposes other than as a means of payment." - This is referring to all the banknote collectors or is it something else?

"For example, individuals hold bank notes as a store of value and for precautionary purposes. Indeed, the value of bank notes in circulation has  risen at an annual rate of about 5 per cent since 2000, virtually the same as the growth in aggregate personal expenditures."

"Moreover, the ratio of  the stock of large-denomination bank notes to overall consumer spending has risen since the 2007–09 global financial crisis. It would appear that the  use of cash for non-payment purposes has grown markedly since 2000,  even though the share of cash-based retail transactions has continued to
decline."

So what are these "cash for non-payment purposes"

AND

"In the early 1990s, cash accounted for more than 80 per cent of the volume  and about 50 per cent of the value of POS transactions"

"In 2011, however, these shares dropped to below 50 per cent in volume and less than 20 per cent in value."

So the value of bank notes in circulation has increased but its proportion as the total of all POS has declined.

This just means we spend more now than in 1990's (of course inflation) and those who have been using cash still use cash. 

I can actually see other nations following suit..

The new polymer series that the BOC has issued will probably have a life span of around 9 - 12 years.

In that time it's very concievable to think that technology will be the accepted norm for most transactions and transfer of payments.

The following paper by BoC is an interesting read in this area:

http://www.bankofcanada.ca/wp-content/uploads/2012/11/boc-review-autumn12-arango.pdf

What I don't get is this:

"Canadians also use cash for purposes other than as a means of payment." - This is referring to all the banknote collectors or is it something else?

"For example, individuals hold bank notes as a store of value and for precautionary purposes. Indeed, the value of bank notes in circulation has  risen at an annual rate of about 5 per cent since 2000, virtually the same as the growth in aggregate personal expenditures."

"Moreover, the ratio of  the stock of large-denomination bank notes to overall consumer spending has risen since the 2007–09 global financial crisis. It would appear that the  use of cash for non-payment purposes has grown markedly since 2000,  even though the share of cash-based retail transactions has continued to
decline."

So what are these "cash for non-payment purposes"

AND

"In the early 1990s, cash accounted for more than 80 per cent of the volume  and about 50 per cent of the value of POS transactions"

"In 2011, however, these shares dropped to below 50 per cent in volume and less than 20 per cent in value."

So the value of bank notes in circulation has increased but its proportion as the total of all POS has declined.

This just means we spend more now than in 1990's (of course inflation) and those who have been using cash still use cash. 

I am assuming they mean some people use cash for savings (ie. under the mattress).  Just a guess.