Thedéen: Payments resilience key in new world order
Riksbank Governor Erik Thedéen highlighted the need for international and domestic cooperation to strengthen resilience against new global risks. Speaking at Hanaholmen, he particularly emphasized the importance of secure and efficient payment systems.
Navigating a turbulent global landscape
Thedéen described the current international situation as uncertain and turbulent, citing Russia's ongoing invasion of Ukraine and escalating conflicts in the Middle East.
These developments introduce new and heightened economic risks, including tariffs, supply chain disruptions, and volatile commodity prices.
He stressed that the threats facing Nordic, Baltic, and other European countries are complex and unpredictable, encompassing both economic and operational risks.
The Governor noted Sweden's strong economic fundamentals, with inflation back on target and low national debt, enabling decisive action against new threats.
He underscored the necessity for resourceful, innovative companies and close cooperation among Nordic and Baltic nations, as well as with other like-minded countries, to foster security, resilience, and competitiveness.
The extensive measures taken since the 2008 financial crisis have strengthened the financial system, with tightly integrated Nordic-Baltic banking systems and deepened cooperation on crisis preparedness, including joint exercises in 2019 and 2024.
Securing critical payment functions
The speech emphasized the clear need for operational preparedness to prevent and manage risks, citing physical attacks on civilian infrastructure like data centres.
The Riksbank, alongside other central banks, is conducting intensive preparedness work, notably cooperating with the National Bank of Ukraine to learn from wartime central bank operations.
Thedéen highlighted the importance of investment, prioritisation, and close cooperation to build societal resilience, especially in areas of dependency.
Payments were identified as a critical societal function that must operate even during crises.
Since 2023, the Riksbank has been responsible for ensuring payment functionality during peacetime crises, heightened alert, and war, working intensively with companies and Nordic neighbours to enhance payment system resilience.
This includes promoting innovation and competition based on Nordic and European infrastructure to strengthen autonomy against digital and physical threats.
Payments as a national security asset
Thedéen's speech signals a significant expansion of central bank focus beyond traditional monetary policy to encompass national security and operational resilience.
While the emphasis on payment system robustness is pragmatic, it underscores a stark acknowledgment of how geopolitical instability directly impacts core economic functions.
This proactive stance, including initiatives for offline payments and cash acceptance, is crucial for maintaining public trust and economic stability in an increasingly volatile global landscape.