Swiss to vote on preserving cash as a payment system

Despite its steadily declining use in everyday transactions, cash remains popular among the Swiss population. Schweizerische Nationalbank 2016

On March 8, the Swiss will decide whether the availability of cash should be enshrined in the constitution. A popular initiative and the government’s counterproposal are both on the ballot. An explainer.

How do the Swiss use cash currently?

According to a recent studyExternal link by the Swiss National Bank (SNB), Swiss residents are moving away from using cash. In 2017, more than seven out of ten people paid with cash at kiosks, restaurants, and shops. In 2024, only three out of ten did so, and among those aged 15 to 34, fewer than two in ten used cash.

Debit cards, credit cards, and digital apps – especially Twint, a Swiss payment app – are increasingly popular. Until relatively recently, many people settled their household bills in cash at the post office. But digital payments have now reduced those cash remittances to less than 1% of post-office transactions.

Although the Swiss are using cash less, they don’t like the idea of it disappearing. Over two-thirds of those surveyed by the SNB want to preserve their option to use cash. An additional quarter who rarely use cash also want it to remain available.

In short, most Swiss are in favour of conserving banknotes and coins. Cash is even gaining in popularity due to current geopolitical and economic instability, according to a 2025 study by the University of St Gallen. In 2024, nearly nine out of ten people surveyed opposed the disappearance of cash, compared to just over seven out of ten in 2023.

What exactly is on the ballot on March 8?

Voters will decide whether to guarantee, in the constitution, the availability of cash. If they wish to do so, they have two choices: a popular initiative (“cash is freedomExternal link”) and the government’s counterproposal.

First they will vote yes or no on each option. Then they will decide a subsidiary question: which option would they prefer if both are accepted? Voting on both an initiative and a counterproposal has not occurred at the federal level for about 15 years, although it happens regularly at the cantonal level.

Who launched the popular initiative and what does it call for?

The “cash is freedom” initiative was introduced in 2023 by a citizens’ organisation called the Swiss Freedom MovementExternal link (also known as the MSL, based on its French name). The MSL launched a prior initiative against mandatory vaccination that was widely rejected in 2024.

The cash initiative garnered 137,000 signatures without the support of any political party. It calls for banknotes and coins to be forever available in sufficient quantities. It also wants any attempt to replace the Swiss franc with another currency to require approval by a popular vote and a cantonal majority. These demands would be added to article 99 of the Swiss constitutionExternal link, which covers monetary policy.

Richard Kohler, president of the MSL, believes cash represents freedom, independence, and security. First, it offers security against potential chaos caused by computer and internet failures or hackers. He argues that cash is also critical for senior citizens and for anyone philosophically opposed to digital technology.

The MSL also hopes that preserving cash will help prevent “permanent surveillance of our spending and activities” – as well as developments like the Chinese social-credit system, which monitors the so-called trustworthiness of individuals and businesses.

What does the counterproposal offer?

The government and parliament agree with the MSL on the importance of cash and on using the Swiss franc as the national currency. They note that both ideas are already guaranteed by two existing laws. But they nonetheless approve of enshrining them in the constitution.

The authorities feel, however, that the text of the popular initiative is inadequate. Their counterproposal would spell out, in article 99 of the constitution, that the Swiss franc is the national currency and that the SNB must guarantee the supply of cash. Unlike the initiative, the counterproposal uses the term “cash” rather than “coins or banknotes”.

The counterproposal’s wording, according to the authorities, is based on precise and proven legal principles. They believe it meets the aims of the initiative’s organisers but avoids encroaching on the SNB’s territory.

Lastly, the counterproposal guarantees the cash supply, but without defining the parameters of the supply. The popular initiative specifies a “sufficient” cash supply.

Why are both the initiative and counterproposal on the ballot?

The MSL was not satisfied with the government’s counterproposal and therefore did not withdraw its initiative. “Unfortunately, we cannot be sure that the politicians have really understood our demands,” it says.

The counterproposal specifies that “the Swiss National Bank guarantees the supply of cash”. The MSL believes this fails to ensure that “the banks will continue to offer the population sufficient access to cash”. It argues that even if the SNB supplies banks adequately with cash, it cannot force them to maintain branch offices and ATMs. The MSL therefore calls for the government to guarantee the cash supply.

The MSL also objects to the counterproposal’s use of the word “cash” instead of the initiative’s “coins and banknotes”. It believes “clever legal experts […] could one day argue that a state digital currency […] sharing some characteristics of cash but without a physical form could legally be considered a form of cash. And so the door would be open to the introduction of a state digital currency intended to replace physical cash”.

Who supports which proposal?

The initiative is often praised for its aims but rejected for its wording. Among the political parties, only the right-wing Swiss People’s Party supports it.

Both chambers of parliament support the counterproposal nearly unanimously. The debates in the House of Representatives showed that cash can combat digital profiling, computer and network failures, and online fraud – and that it reduces digital transaction costs for shops and restaurants.

The counterproposal is also supported by the cantons, the main industry associations (for example economiesuisse, the Swiss Bankers Association, and the Swiss Farmers’ Union), and unions (for example the Swiss Trade Union Federation, and Travail.Suisse).

Edited by Samuel Jaberg. Adapted from French by K. Bidwell/ts