When it comes to cash and its future, Swiss authorities seem to have a totally opposite view to that of their Indian counterparts -for them cash is ‘more reliable’ and enjoys a low opportunity cost. Among other benefits over cashless payments, cash provides ‘more effective budget control’ and can be used without any technical know-how, while it also offers a comprehensive protection with regard to financial privacy, a top official of Swiss National bank (SNB) has said.
Amid a debate on future of cash globally and the ambitious demonetisation move carried out by India, SNB’s deputy head Fritz Zurbruegg said there remains a continuing robust demand for cash among general public and banknotes are like the country’s ‘calling cards’ in case of Switzerland. It has been speculated for some time that Switzerland may have to do away with cash, especially high value banknotes, to get rid of its tag of being an alleged ‘safe haven’ for black money stashed by foreigners including from India. A number of policy measures have been put in place by Swiss authorities in the recent years to address concerns of its banks providing highsecrecy walls around their global clients. New rules make it much easier for several foreign jurisdictions, including India, to get details from Switzerland about people suspected to be involved in tax evasion and other financial crimes. Addressing the World Banknote Summit in Basel last night, Zurbruegg said they have no plans to do away with cash.
“The last few months and years have witnessed a growing debate on the future of cash. Its critics say that cash should be abolished, or that cashless alternatives will in any case gradually render it obsolete. However, to paraphrase Mark Twain: Reports of the death of cash have been greatly exaggerated,” the Swiss central bank’s deputy head said. He said there remains a continuing robust demand for cash on the part of the general public.