Could Switzerland's central bank abandon paper money?
This may seem like a highly unlikely scenario in Switzerland, but there is some suspicion that banknotes could soon be a thing of the past.
How could such a thing be possible?
Niklaus Blattner, the former vice-president of the Swiss National Bank (SNB) recently estimated the lifespan of banknotes at 15 years — much less than 40 years that was the norm in the past.
The reason for the shorter lifespan of the banknotes is that “due to advances in reproduction technology, it can’t be ruled out that security features used today could one day be partially imitated,” Blattner told Watson news platform in an interview.
As the 10, 20, 50, 100, and 1000-franc bills that are currently used had been put into circulation between 2015 and 2019, it means the new series is due from 2030 onward.
Since it takes some time to actually design and develop new banknotes, this process should have begun already — but it hasn’t, raising questions about whether the 537 million banknotes currently in circulation in Switzerland will be replaced or abandoned altogether over time.
When asked to comment on the delay, the SNB “doesn’t want to talk it. The subject is too sensitive,” according to Watson’s report.
Could the central bank actually take such a drastic and unprecedented measure?
It is true that fewer people in Switzerland rely on cash now than previously.
Cashless / touchless payments are much more popular and commonplace — in fact, a growing number of people prefer credit cards and other cashless transactions, including Twint, that have become popular during the pandemic.
So much so, in fact, that Switzerland now ranks high in the European index of countries whose residents favour electronic payments over cash.
READ ALSO: Can you live in Switzerland cash free?
However, this growing reliance on cashless payments doesn’t mean that the Swiss are ready to give up the physical franc — quite the opposite.
Some in Switzerland even want to enshrine the sanctity of cash in the country’s Constitution.
The Swiss Freedom Movement (MLS) group has collected more than 157,000 signatures to launch a national vote (150,000 are required) to prevent the phasing out of cash in favour of credit cards and other cashless transactions.
“Cash is freedom and an absolute priority for Switzerland," the group said.
The referendum has not yet been launched, so it is impossible to know at this time if this stance is shared by the majority of voters, or whether it is limited to just a few traditionalists.
Surveys show, however, that 67 percent of Switzerland’s residents still consider cash to be completely indispensable, while 96 percent use cash for payments.
READ ALSO : Why do the Swiss love coins and banknotes so much?
Comments
See Also
How could such a thing be possible?
Niklaus Blattner, the former vice-president of the Swiss National Bank (SNB) recently estimated the lifespan of banknotes at 15 years — much less than 40 years that was the norm in the past.
The reason for the shorter lifespan of the banknotes is that “due to advances in reproduction technology, it can’t be ruled out that security features used today could one day be partially imitated,” Blattner told Watson news platform in an interview.
As the 10, 20, 50, 100, and 1000-franc bills that are currently used had been put into circulation between 2015 and 2019, it means the new series is due from 2030 onward.
Since it takes some time to actually design and develop new banknotes, this process should have begun already — but it hasn’t, raising questions about whether the 537 million banknotes currently in circulation in Switzerland will be replaced or abandoned altogether over time.
When asked to comment on the delay, the SNB “doesn’t want to talk it. The subject is too sensitive,” according to Watson’s report.
Could the central bank actually take such a drastic and unprecedented measure?
It is true that fewer people in Switzerland rely on cash now than previously.
Cashless / touchless payments are much more popular and commonplace — in fact, a growing number of people prefer credit cards and other cashless transactions, including Twint, that have become popular during the pandemic.
So much so, in fact, that Switzerland now ranks high in the European index of countries whose residents favour electronic payments over cash.
READ ALSO: Can you live in Switzerland cash free?
However, this growing reliance on cashless payments doesn’t mean that the Swiss are ready to give up the physical franc — quite the opposite.
Some in Switzerland even want to enshrine the sanctity of cash in the country’s Constitution.
The Swiss Freedom Movement (MLS) group has collected more than 157,000 signatures to launch a national vote (150,000 are required) to prevent the phasing out of cash in favour of credit cards and other cashless transactions.
“Cash is freedom and an absolute priority for Switzerland," the group said.
The referendum has not yet been launched, so it is impossible to know at this time if this stance is shared by the majority of voters, or whether it is limited to just a few traditionalists.
Surveys show, however, that 67 percent of Switzerland’s residents still consider cash to be completely indispensable, while 96 percent use cash for payments.
READ ALSO : Why do the Swiss love coins and banknotes so much?
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.