Switzerland’s cash-obsessed citizens are falling out of love with physical money. Some 36% of consumer transactions were settled using physical money last year, according to a Swiss National Bank (SNB) survey published on Thursday.
That compares with 43% in 2020 — when the pandemic was raging, discouraging the use of cash — and 70% in 2017. Another 33% were settled with debit cards, 13% using credit cards and 11% via mobile payment apps.
Cash is an emotive issue in Switzerland, where every inhabitant holds the equivalent of $11,824 in cash, the most in all economies where the Bank for International Settlements collates data.
On top of that, a group called the Swiss Freedom Movement recently collected more than 130,000 signatures for writing the existence of physical money into the constitution. The government decided to back the preemptive move against the spread of digital money, supporting a national vote to change the constitution in this regard.
In total CHF81 billion ($89 billion) worth of bills and coins were in circulation as of March, according to SNB data. A significant part of that may be held outside the country to store value, especially since more than half of the total is in the form of 1000-franc notes, one of the highest-denomination bills of the world.
When the central bank started to raise interest rates last June, the amount of outstanding cash started to decline, but it remains well above the level it was at when borrowing costs dropped below zero.
Somewhat paradoxically, a peer-to-peer payment app called Twint also is increasingly popular in Switzerland — used by 5 million of its 8.7 million inhabitants. That contrasts with the neighboring euro area, which currently lacks a comparatively well established payment app.
While the SNB remains neutral on which payment methods Swiss citizens use, Vice President Martin Schlegel has said that cash use might face a “downward spiral” if more people decide to not use it any more, driving up unit costs of money logistics. “Cash is a well-functioning system, but it is not to be taken for granted,” he said recently.
Train vs plane: would you take a direct train between London and Geneva?
Eurostar is planning to run direct trains from Britain to Germany and Switzerland from the early 2030s. Would you favour the train over the plane? If not, why not?
Premiere for Swiss Air Force on French National Day
This content was published on
On July 14, the Swiss Air Force will take part in the traditional air parade in Paris to mark the French bank holidays with an F/A-18 fighter jet. This is a first for Switzerland.
Swiss launch competition for memorial to Nazi victims
This content was published on
The victims of Nazi Germany are to be commemorated on the Casinoterrasse in Bern. A competition will be held to determine what the site will look like.
This content was published on
The cantonal police of Graubünden in eastern Switzerland have arrested and convicted five cocaine dealers in Chur within a week.
This content was published on
The Swiss business umbrella organisation Economiesuisse and the employers' association broadly support the package of agreements negotiated with the European Union.
Top Swiss politician experiences drone attack in Ukraine
This content was published on
Maja Riniker, president of the Swiss House of Representatives, said she had to spend two hours in a bunker during her trip to Ukraine because of Russian drone attacks.
This content was published on
A rockfall caused an interruption of several hours on the Albula line of the Rhaetian Railway between Thusis and Tiefencastel on Thursday.
This content was published on
A 600kg bull that escaped in the Montalchez region of canton Neuchâtel has been found in a pen surrounded by several cows.
Bern chatbot wins UN artificial intelligence award
This content was published on
The Bern-based chatbot "Sophia" has won the United Nations' "AI for Good Impact Award 2025". The chatbot is designed to help victims of domestic violence.
Will the thousand-franc note become the cash of choice for crooks?
This content was published on
A proposal that would see the Swiss 1000-franc note become valid for life has angered transparency advocates and the political left.
This content was published on
The total value of all CHF1,000 ($1,070) notes in circulation was more than CHF35 billion in 2012. Their share in the CHF55 billion total of all Swiss banknotes rose to a record 60 per cent last year from 50 per cent a year earlier. As a comparison, only a third of all euros are circulating…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.