Switzerland still prefer paper money
Unlike most European countries, Switzerland has just launched its 1,000 franc note, the highest denomination in its financial apparatus
In a global scenario characterized by electronic commerce, digital payment methods, cryptocurrencies, blockchain technology and mobile applications that facilitate transactions in a few minutes, Switzerland seems to prefer fiat money. In fact, last month the Swiss National Bank (SNB) issued the 1,000 franc note, the largest denomination in its financial system.
Beyond how striking this ticket can be, purple and a little smaller than the previous one, it is important to point out that it is among the highest denomination in the world, equivalent to US $ 1,007.
The launch of the ticket coincides with a marked decline throughout Europe in the use of cash. Certainly, many nations, not only of the European Union but of the whole world, demonstrate a tendency to electronic commerce to save paperwork, time and make transactions faster and safer.
Fritz Zurbruegg, vice president of the SNB, said that for the Swiss the cash is a “cultural phenomenon” and defended the new monetary denomination of 1,000 francs as the solution for high-value purchases and payment of accounts.
The figures of the Swiss National Bank indicate that 48 million of these tickets are already in circulation, which represents “60% of the value of all the tickets” in the country.
A possible justification for the preference of the Swiss for cash is that they consider it a control mechanism over their expenses, in addition to having tickets in their pockets gives them security. Another valid argument is that if there is a failure of the digital platforms who has “real money” in their wallet, they can pay their expenses.
In the Basel market, in fact, most businesses only accept cash payments. A low percentage of clients use the credit or debit card in vegetable stands or restaurants; they prefer to use them in shopping centers and stores.
On the arrival in the financial world of the digital age, blockchain technology, cryptocurrencies and mobile payment systems, Jonathan Rea, CEO of the business consultancy Foinder, considers that Switzerland is at least a decade away from adopting en masse cryptocurrencies. He adds that “for it to happen depends on a negotiation between privacy, convenience, identity and the perceived value of cash as a protection against indebtedness.”
M.Pino
Source: bbc.com
