Swiss lawmakers unanimously approved the Federal Council’s direct counter-proposal to the popular initiative of the Swiss Freedom Movement (MLS). The Constitution will be amended accordingly.
The initiative “Yes to free and independent Swiss currencyThe money used in a particular country at a particular time, like dollar, yen, euro, etc., consisting of banknotes and coins, that does not require endorsement as a medium of exchange. More in the form of coins or banknotes” aims to guarantee the continued use of cashMoney in physical form such as banknotes and coins. More in Switzerland. It also requires that any proposal to replace the Swiss franc with another currency be put to a vote by the people and the cantons.
These principles should be enshrined in the Constitution. According to the MLS, this will guarantee the continued use of cash in Switzerland, which is currently under threat.
The Federal Council rejected the initiative but opted for a counter-proposal. It plans to enshrine in the Constitution the guarantee of cash supply and the use of the franc as the national currency.
These principles are already guaranteed in legislation. But by enshrining them in the Constitution, it responds to two demands of the initiative. The counter-proposal will not introduce any obligation to accept cash.
“The Federal Council recognizes the importance of cash for the economy and society,” said Finance Minister Karin Keller-Sutter. According to a survey, 95% of those questioned want cash to be retained, but more and more of these same people are using electronic means of paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More on a daily basis, she noted.
The Council of States made a slight amendment to the Federal Council’s counter-proposal. Unlike the National Council, the senators do not want to enshrine the term “Swiss franc” in law instead of “franc.” The term “franc” is traditionally used on banknotes. The National Council will therefore have to resolve this minor difference.
Like the National Council, the Council of States has not yet issued a voting recommendation on the popular initiative. The counter-proposal will be put to a vote by the people and the cantons at the same time as the popular initiative, if the latter is not withdrawn.
Last October, the Swiss central bank President, Martin Schlegel, unveiled plans for a new series of franc notes, saying cash would remain a “widely used payment methodSee Payment instrument. More in the future” despite the rising market share of mobile and card payments.
It is not certain that the government’s counter-proposal will satisfy the initiative committee. It stipulates that the SNB shall ensure “the supply of cash.” This terminology is too vague, unlike the initiative, which emphasizes the physical nature of cash (banknotes and coins).
The MLS had also launched a second initiative in favor of cash, notably its continued use in public transport and shops. However, the text entitled “Anyone who wants to pay with cash should be able to do so!” did not collect the required 100,000 signatures within the deadline.
In the meantime, the Federal Council is examining the obligation for public transport companies to accept cash.
In 2023, the Slovakian Parliament adopted a law which makes the right to pay in cash part of the constitution. In 2018, the Mexican Supreme Court ruled that a law banning cash in ride-hailing apps was unconstitutional.