Norway Legislates Right to Pay with Cash Despite Being World's Most Cashless Country

Norway, the world's most cashless country with only 2% of payments made using cash, is introducing new legislation to ensure citizens have the right to pay with cash. The move comes as a precautionary measure to maintain emergency preparedness in case digital payment systems fail.

According to Barefoot Investor Scott Pape, Australia is unlikely to become a completely cashless society despite the declining use of cash. Cash now forms just 13% of all customer payments in Australia, with almost 99% of transactions conducted online. In contrast, Norway has seen cash usage diminish to a mere 3% of all payments.

The Norwegian government's decision to legislate the right to use cash follows an incident where card terminals crashed across the country, highlighting the vulnerability of relying solely on digital payment systems. By enshrining the right to pay with cash into law, Norway aims to ensure its citizens have a fallback option in case of technological failures or emergencies.

Why this matters: Norway's move to protect the right to use cash underscores the importance of maintaining diverse payment options, even in highly digitized societies. It serves as a reminder that while the transition to cashless payments offers convenience and efficiency, it is vital to have contingency plans in place to ensure the resilience of financial systems.

Pape argues that while the cost of transporting and handling cash is high, Australia is unlikely to completely eliminate cash payments. He suggests that businesses may start charging extra fees for cash transactions to offset the associated costs. As Norway navigates the balance between digital innovation and cash accessibility, it sets an example for other countries grappling with the implications of an increasingly cashless future.

Key Takeaways

• Norway, world's most cashless country, legislates right to pay in cash.
• Australia unlikely to become fully cashless despite declining cash usage.
• Norway's move aims to ensure resilience of financial systems in emergencies.
• Maintaining diverse payment options is crucial in highly digitized societies.
• Businesses may charge extra fees for cash transactions to offset costs.