Swedish lawmakers overseeing monetary policy have proposed forcing the country's larger banks to handle more cash amid worries that physical money is becoming obsolete, Bloomberg News reported June 11.
The Riksbank committee is considering a law that will compel banks offering checking accounts and holding more than 70 billion Swedish kronor in public deposits to take cash and offer cash withdrawals using third-party agents, automated teller machines or over-the-counter services. The law seeks to ensure 99% of the country's citizens have access to cash within 16 miles.
Sveriges Riksbank Governor Stefan Ingves, who supports the measure, warned that a scarcity of cash could be a problem in a crisis situation, Bloomberg reported.
The Swedish Bankers' Association, however, said that applying the regulation to only some banks would violate European Union law on competition and state aid. It might also incur up to 100 million kronor in additional costs every year for banks and their customers, the association said.
As of June 11, US$1 was equivalent to 8.65 Swedish kronor.
