Swiss Nationwide Financial institution (SNB) Vice Chairman Martin Schlegel stated Friday (Feb. 23) that bodily money won’t ever disappear from use in Switzerland, regardless of the recognition of cost apps.
Talking at an occasion, Schlegel emphasised the significance of money for a big a part of the inhabitants, citing nations like Sweden the place money utilization declined however nonetheless remained after reaching a sure degree, Reuters reported Friday (Feb. 23).
Schlegel’s feedback got here on the identical day that that the SNB launched a survey on cost strategies utilized by firms in Switzerland.
He famous that whereas using money might decline in Switzerland over the long run, it’s troublesome to find out the bottom degree, the Reuters report stated.
Schlegel warned in opposition to a damaging spiral the place a discount in banking branches and money machines results in much less use of money, per the report. The SNB, Switzerland’s central financial institution, intently displays the availability of ATMs and financial institution branches within the nation and is ready to take motion if the downward development accelerates.
Schlegel kept away from discussing the influence of fewer financial institution branches after the takeover of Credit score Suisse by UBS final 12 months, stating that it was a enterprise resolution for UBS, in line with the report.
The SNB not too long ago discovered that financial coverage, together with rates of interest and overseas change interventions, just isn’t presently affected by the decline in money utilization, the report stated.
The survey launched Friday by the SNB discovered: “Money acceptance continues to be excessive and has modified little since 2021,” the central financial institution stated in a Friday press launch. On the similar time, firms have adopted further cost strategies, particularly cell cost apps and transfers.
In an earlier survey that centered on customers, the SNB discovered that “there’s a broad want among the many inhabitants for money to proceed to be out there as a cost methodology.”
Elsewhere in Europe, a survey launched in January 2023 discovered that extra folks reported a lower of their money utilization than reported a rise.
The European Central Financial institution (ECB) survey discovered that 32% of respondents had lowered their money utilization in comparison with pre-pandemic ranges, whereas 14% stated their money utilization had elevated. The most important group of respondents — 54% of them — reported no change of their money utilization.