the riksbank we ensure that the payments are running smoothly. by ensuring that one can rely on the banking system where money is stored and created. in times of crisis, central banks shall be able to lend money to banks that are considered systemically important and solvent, but which have liquidity problems. this is known as being ‘ lender of last resort ’, and it has been shown that central banks strengthen confidence in the banking sector in this way, which reduces financial stress and the risk of financial crises. 5 another important way of building confidence in the banking sector is to ensure that the banks are under sufficiently strict financial regulation and supervision – a responsibility that is divided between different authorities in sweden. this ensures that the banks have sufficient capital and liquidity and that they limit their risk - taking. 6 by ensuring that one can rely on the swedish krona in all its forms. as bank deposits are redeemable for central bank money, one can rely on one krona always being one krona. in earlier times, when private banks could issue their own banknotes, it was sometimes the case that banknote from different banks were traded at different values. 7 by ensuring there is sufficient safe money. the riksbank supplies as much cash as is in demand and contributes to the stability of the banking system's supply of other means of payment. in future, the riksbank may need to supplement cash with an e - krona, to secure the general public ’ s access to central bank money. 4 kocherlakota ( 1996 ) has written an essay called “ money is memory ”. 5 walter bagehot wrote about this as early as 1873. 6 i would also like to mention that the deposit guarantee, which is managed by the swedish national debt office, is also important in avoiding bank runs. 7 see, for instance, soderberg ( 2018 ). 4 one can say that the riksbank functions as the hub of the swedish financial system. we can also note that the financial system that has grown up around the world is based on countries or currency areas having state money and state control over the payment system. quite simply, state institutions are needed to guarantee that the requirements in these points are met. 8 payment markets are changing – motives for an e - krona almost all economic activity is linked to some form of payment, so without functioning payment systems the economy would grind to a halt. it is therefore important that the central banks adapt to the technical innovations

make direct payments to other countries, as online trade is increasing. the central banks need to ensure that these flows are also stable and efficient. at present, cross - border payments are often slower and more expensive than domestic payments. 13 there is therefore a large - scale international cooperation within the frameworks for the g20, fsb and bis to improve international payments. although sweden is not a member of the g20, we play an active role in this work, and one of the working groups is led by first deputy governor cecilia skingsley. in addition to this, the riksbank is also working more locally on making it easier for swedish households and companies that want to make cross - currency payments. we have begun to investigate, together with the ecb, whether it would also be possible to use the tips platform for cross - currency payments. as i mentioned earlier, the riksbank will have its rix - inst service for instant payments in sek there. if we succeed with this type of standardisation, it might also work as an example for other countries and regions to follow. another change that is under way in sweden in particular, is the continuing decline in the use of cash. according to the riksbank ’ s most recent survey, less than one in ten purchases in sweden is made with cash now, see figure 1, and last year swish was for the first time used more than cash. 12 the riksbank has signed an agreement with the ecb on the settlement of swedish krona in tips. for further information on this, see link on riksbank's website. this applies primarily to payments outside of the eu. for an arithmetical example, see the report payments in sweden. 7 there are many reasons why swedes are choosing to abandon cash. 14 one example is the rapid emergence of the swish mobile app. even if we welcome technological developments and the increased competition on the payment market, there is a risk that developments will move too fast. there are many people who have problems in using digital methods of payment, and when fewer and fewer businesses and restaurants accept cash, some people will experience problems. cash is no longer easy to use. many shops and restaurants will no longer accept cash, and it is difficult to deposit and withdraw cash, especially if one is dependent on doing so over the counter and not through an atm. i, and the riksbank, have long pointed out that the legal position of cash needs to