Sveriges Riksbank, the central bank of Sweden, has asked the Swedish parliament to introduce a legal requirement for the nation's banks to provide cash service.

In recent years, the Swedish government has pursued a cashless policy, prompting a decline of nearly 25 percent in the amount of currency in circulation since 2012.

However, Riksbank said in a notice to the government, Sweden is moving too fast in its dash to cashlessness.

Payment digitalization in itself is positive, the central bank said, but it needs to take place at a rate that takes "certain groups" into consideration, as well as certain situations in which cash is the only possible payment method.

According to the Riksbank notice:

The banks have been too quick to reduce cash handling. This has made it difficult to maintain access to cash services, primarily in sparsely populated areas, but also elsewhere.

If the banks continue to set the pace, there is a high risk that the possibility of using cash will disappear before alternative means of payment have become widespread and generally accepted.

To restrain this development, the Riksdag (the Swedish parliament) should introduce a clear obligation for the banks to provide basic functions that meet customers' needs.

The central bank went on to say that in order to maintain an efficient payment market, consumers and businesses must have access to payment accounts at financial institutions.

"This would mainly make it simpler for them to deposit cash and reduce the risk of payments being made outside the banking system, thereby reducing the risk of money laundering taking place," Riksbank said.

Patrick Nordwall, CEO of the Stokholm-based IAD re:cash, welcomed the Riksbank statement.

"[W]e believe it is necessary for the Riksbank to take a stand on the issue of cash in society," he said. "The state has the responsibility for maintaining the smooth functioning of national cash handling. This is vital, particularly in relation to financial inclusion for all Swedes."

The ATM Industry Association also expressed approval. "We have long since called for the Swedish government to recognize that access to cash is fundamental," said Ron Delnevo, executive director of ATMIA Europe. "[W]e are delighted the Riksbank has joined us in our calls for the government to take legislative action in the public interest."

ATMIA CEO Mike Lee praised the Riksbank action, calling it "a victory for common sense and for the future balance of the Swedish consumer economy; I'd like to congratulate the Swedish Riksbank for seeing through the mirage of anticash propaganda in the media to reveal the basic economic right of free citizens to choose their own payment methods at all times, whether cash or digital."