Recent data indicates that Switzerland is moving towards a fully digital society, with card payments surpassing cash usage for the first time.
Growth of Digital Payments
Switzerland has traditionally favored cash, but a survey by the Swiss National Bank shows that 35% of purchases are now made with debit cards. This is a significant increase from 2017, when 70% of transactions were in cash. Economist Alexander Koch from Raiffeisen Switzerland noted that the pandemic accelerated the shift to cashless payments. He compared this to the situation in German-speaking countries, where cash preference remains, unlike in the Netherlands and Scandinavia.
Opportunities for Swiss Stablecoin
Despite the increase in digital payments, cash remains a significant part of the Swiss economy with the country ranking second in the world for per capita cash holdings. There is strong potential for the development of stablecoins. The concept of tokenized Swiss francs could streamline payment processes and activate features such as instant settlements.
Central Bank Digital Currency
The Swiss National Bank is hesitant to rush the introduction of a central bank digital currency due to concerns about costs and privacy. Senior economist Thomas Moser explained that the risks associated with CBDC outweigh potential benefits compared to existing systems.
Despite growing interest in digital payments, the Swiss National Bank is approaching the introduction of digital currency cautiously. However, digital transformation and Swiss banks' collaboration with blockchain technology show that interest in this direction won't disappear.
