That cash reigns unchallenged in Switzerland, with a traceability threshold of 100,000 Swiss francs (93,000 euros) is a well-known fact. Unless the Swiss also try to defend it with their teeth. On 17 August last, in Bern, a popular initiative was launched in favor of the use of cash, entitled: “Yes to a free and independent Swiss currency, in the form of coins or banknotes”.
The idea, in defense of the possibility of always being able to dispose of cash in the future, without lowering the current traceability threshold, as an alternative to electronic payments, came to a citizens’ committee, the Swiss Freedom Movement, close to the positions UDC (Democratic Union of the Center), the main right-wing party.
The president and spokesperson of the movement and Richard Koller, former UDC secretary of Lucerne, dismissed from the party in 2017 for launching his own anti-immigration popular initiative, similar to the one the UDC wanted to launch a few months later. The movement is also known for having launched an initiative against the mandatory vaccine in December last year.
The aim is to collect 100,000 signatures required by February 2023 for the presentation of a text of the law to be sent to parliament for the definitive referendum question. In 2019, a similar initiative by the Canton of Zug, which asked for the existence of banknote denominations of 10, 20, 50, 100, 200 and 1000 francs to be guaranteed by law, was not successful.
But the defense of cash by law has every chance this time to become a referendum. The use of cash is part of the Swiss identity. The principle of inviolability of the individual sphere, which would be at the basis of the choice of cash.
The data listed in the report on source SNB (Swiss National Bank) are clear. 45% of all payments in Switzerland are still made in cash, with which cars, kitchens, furniture and household appliances are very often bought. There is no mention of construction work, but it goes without saying that black is very common in construction. In any case, tax evasion remains an administrative and not a criminal offense in Switzerland for the time being. Do you think that all Swiss shopkeepers issue receipts
. Take a tour in the loyal Canton of Bern and you will find that this is not the case.
Not enough: the use of cash is increasingly preferred by the Swiss. According to the report, the total amount of banknotes in circulation in Switzerland grew by an average of 7% per year between 2008 and 2016. The 1,000-franc notes grew by 8.7% over the same period and those from 200 by 12%. It is estimated that on average, every Swiss person holds around 10 thousand francs in cash between the mattress and the safety deposit boxes.
This interesting report, drawn up by the Swiss at the request of the Paris offices to justify the casual use of cash, explains the reasons for this anomaly, inscribed in Swiss tradition and history. Suffice it to say, among other things, that the VAT rate was only introduced in 1993.
But the reasons are also of a practical nature. Low inflation and the negative rates applied by the SNB to stimulate the economy and keep the franc cheaper than other currencies have passed the costs on to banks, which charge a 0.75% commission on liquid assets in Swiss francs deposited in their accounts. , and 0.60% on those in euros above the threshold of 250 thousand francs.
The conclusion of the relationship is that you can rest assured. Cash in Switzerland does not pose a threat to money laundering or the financing of terrorism, as Switzerland is already keeping an eye on suspects by other means. Point.
On the other hand, it is known that Switzerland is a curious country, which has the cult of the protection of the private sphere. In many condominiums it is not possible to take a shower, turn on the TV or have discussions between 10 pm and 8 am and you cannot attack paintings on Sundays. In trains there is a ruhezone, the “zone of silence”, in special compartments, for those who can’t stand people who chat. And for waiting for delayed trains, a cream fuer strapazierte haende und nerven “for scrambled hands and shattered nerves” is given by the Swiss railways. To console yourself in this severe climate, however, you can still withdraw 99,999 francs at the counter and go wild, without profit meters. But be careful not to scream. (All rights reserved)
