Switzerland will hold referendum on requiring national bank to keep physical cash in circulation

Swiss citizens are likely to vote in a new referendum in the coming weeks on whether to incorporate in the country’s constitution a caveat that the Swiss National Bank and government always maintain ‘a sufficient quantity’ of physical cash in circulation to counter the growing influence of digital money. In a country where the rules of direct democracy dictate that a referendum must be held if supporters manage to muster over 100,000 signatures, the issue is headed for the ballot box as the campaigners, a group called the Swiss Freedom Movement, claim to have collected over 150,000 signatures. While the issue of physical money is an emotive issue in a country where citizens’ holdings of cash is among the highest in economies and physical cash is used for one in every three transactions, it does present a contradiction of sorts in a country that is seen as having moved proactively to ready a template for digital transformation. [...] On the ground, campaigns such as the push for cash offer a contradiction [to the Bern Federal Council's Digital Strategy] push, catalysed largely by its unique direct democracy model that requires any amendment to the constitution to be put before the people in a referendum. [...] Also, despite the federal government’s digitisation push, Swiss banks such as Credit Suisse have been cautious in their foray into digital assets, which has far greater support in other geographies in Europe. But there are signs of progress in other areas, including a digital bond issued by the city of Lugano last month that has become the first digital asset accepted as eligible collateral for Swiss National Bank — the country’s central bank — repos.
Read the full article here: The Indian Express