Corruption, Oligarchy, and Environmental Destruction in a Cashless Society: Sweden’s Digital Economy as a Mirror for the Future of Iraq

Introduction

The global debate over whether transitioning to a cashless society can help eliminate corruption remains ongoing, with Sweden providing a compelling case study that highlights the interplay between digital economies, financial transparency, and institutional integrity. As one of the most advanced examples of a cashless society, Sweden serves as a potential model for countries facing persistent corruption—such as Iraq—which is navigating both systemic challenges and the shift toward digitalization. Some Iraqi policymakers contend that cashless systems can serve as a powerful tool to reduce corruption. But how can this complex challenge be realistically addressed?
Iraq and Its Cashless Reforms

Iraq’s situation is particularly pressing: in addition to economic imbalances, the country faces the compounded effects of climate change, rural-to-urban migration, overcrowded cities, rising poverty, and unemployment. How can this challenge be addressed?

In December 2024, the Central Bank of Iraq (CBI) announced plans to introduce a digital currency as an alternative to cash, aiming to reduce corruption and combat money laundering. However, through comparative analysis, this research demonstrates that while fintech and AI provide tools for financial modernization, they do not inherently dismantle the structural conditions that allow oligarchs to control financial capital.
Let us now turn our attention to Sweden, often hailed as a global leader in the transition to a cashless society.

Cashless Society and Corruption

In 2010, 39% of purchases in Sweden were made with cash. By 2020, this figure had dropped to approximately 9%¹. This rapid shift was facilitated by the widespread adoption of digital payment platforms, most notably Swish—a mobile payment app introduced in 2012. By 2024, over 80% of the population held a Swish account. In parallel, Bank-ID, Sweden’s national digital identification system is now used by 99.9% of all registered Swedes between the ages of 18 and 67, according to Aftonbladet2.

Between 2015 and 2025, Sweden experienced significant changes in its transition toward a cashless society, alongside evolving challenges in combating corruption. According to Transparency International Sweden, organized crime is increasingly infiltrating vital sectors such as municipal services, public procurement, and healthcare through methods including extortion and bribery. Karina Gunnarsson’s 2023 report highlights how criminal networks are leading to payments estimated at between 13 and 16.3 billion kronor annually.
In this context, what emerges is not merely attempts to eliminate corruption, but a financial oligarchy that shapes the digital economy to serve its own interests.

Financial Oligarchy

The goal of a cashless society is not convenience´-or-transparency, but the rapid accumulation of capital—driven by automation, fintech, and AI—consolidating wealth and control in the hands of a financial oligarchy. In a cashless system, banks—and by extension, the financial oligarchy—stand to benefit and accumulate substantial profits. For instance, SEB (Skandinaviska Enskilda Banken) reported a 78% surge in customer deposits during the COVID-19 pandemic3. Substantial profits also stem from loans for housing, vehicles, education, and business ventures. At the same time, banks imposed withdrawal-limit-s, reinforcing their control over customers’ access to funds. In 2022, SEB, Swedbank, and Nordea earned a combined profit of SEK 135 billion—rising to SEK 180 billion in 2023 across the four largest Swedish banks, according to Dagens Arena4.

In this context, a cashless society -function-s as a modern gold mine for banks. Sweden’s five largest banks are reporting record profits, yet continue to contribute nearly 100 million tons of climate emissions annually, according to a report by the Swedish Society for Nature Conservation5.

Environmental Destruction

Sweden, despite its image as a green leader, has witnessed severe environmental violations linked to profit-driven entities. One notable case was the 2018–2020 environmental crime scandal, in which dozens were prosecuted for illegally dumping toxic waste across 21 sites. The damage posed serious health risks and cost taxpayers an estimated 260 million SEK. Such crimes are not isolated incidents but symptoms of a broader system where banks—or more precisely, the oligarchs behind them—prioritize profit over ecological responsibility.

Additionally, between July 2022 and June 2024, SEB, Nordea, and Danske Bank lent over SEK 60 billion to fossil fuel companies, according to the Swedish Nature Conservation Association4.

In December 2024, Sweden’s Financial Supervisory Authority fined Klarna Bank SEK 500 million (approx. -$-45.6 million) for serious anti-money laundering failures, highlighting the risks of weak compliance. These developments collectively demonstrate that, despite their efficiency, digital financial systems do not inherently protect societies from corruption, oligarchy, environmental pollution, financial imbalances, systemic crises and its consequences of poverty, unemployment, inflation and war. That is why this shift has prompted discussions around alternative digital payment systems, such as Bitcoin.

Cryptocurrency, Capital Instability, and the Illusion of Alternatives

The attempt to achieve stability through cryptocurrencies like Bitcoin is nothing more than an illusion propagated by the state, capitalists, the scientists of political economy, and financial experts. While cryptocurrencies mimic the fundamental properties of money, they will remain unstable as long as the capitalist economy itself remains unstable. Ultimately, one truth remains: money is power—whether in cash´-or-digital form.

Cashless Society: A World Free from Corruption?

Today, the most significant monopoly in Sweden may well be the financial monopoly maintained by oligarchic interests. The goal, then, is not to eradicate corruption—deeply embedded in capitalism—but to build a modern banking system powered by fintech and AI. These technologies serve as tools for capital accumulation, reinforcing oligarchic control, enriching elites, and destroying the environment—whether in Iraq´-or-Sweden.
Fintech, AI, and cryptocurrencies are not neutral tools-;- they reinforce capitalist social relations, corruption, and oligarchy that are inherent to money and will persist as long as money exists. The real issue, then, is not the pursuit of a cashless society, but the possibility of dismantling the very relations that sustain money—by eliminating its material basis and the historical conditions that produce it. We cannot envision a world free of corruption without moving beyond the goal of a cashless society, just as a cash-based society is ultimately driven by profits extracted from wage labor. What is needed is a classless, cooperative society—not merely a cashless one.

References:

1. Sveriges Riksbank
www.riksbank.se/en-gb/payments--cash/payments-in-sweden/payments-in-sweden-2020/1.-the-payment-market-is-being-digitalised/cash-is-losing-ground/
2. Aftonbladet, 2025-04-29
www.aftonbladet.se/nyheter/kolumnister/a/W0KAnQ/cervenka-svenska-bankers-makt-har-blivit-en-sakerhetsrisk
3. Swedish banks poised for 25% net interest income growth by 2024 as rates rise, S&P Global
www.spglobal.com/market-intelligence/en/news-insights/articles/2022/8/swedish-banks-poised-for-25-net-interest-income-growth-by-2024-as-rates-rise-71428228
4. Konkurrensbrist och kravlö-;-sa kunder ger miljardvinster, DagensArena
www.dagensarena.se/innehall/extra-skatt-pa-bankvinster-kan-sla-mot-kunderna/
5. Naturskyddsfö-;-rening
www.naturskyddsforeningen.se/artiklar/sanningen-om-svenska-bankers klimatavtryck/

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