Swiss banknotes will change their look again

The Swiss National Bank (SNB) recently announced a call to renew the design of Swiss banknotes. This change comes shortly after introducing the ninth series currently in use. Prof. Edoardo Beretta, adjunct professor at USI Faculty of Economics, commented on the SNB's decision and the significance of cash, both on the microphones of TeleTicino and on the pages of Corriere del Ticino.

The ninth and latest banknotes series was introduced between 2016 and 2019. For this reason, as Professor Edoardo Beretta explained, announcing its renewal now may seem a little premature, at least in the eyes of the population. Martin Schlegel, Chairman of the Executive Board of the SNB, noted that the current banknotes have about half of their lifespan remaining. Since replacing them will take considerable time, it is essential to take action now.

"The redesign can also be seen as an effort to promote the use of cash, which currently accounts for a third of all transactions. This percentage is noteworthy, especially considering that electronic payments dominated during the pandemic. Today, statistical data indicates that cash is primarily used as a store of value," noted Professor Beretta. Who, given the role assumed by cash, clarified, "While it is right to revamp the design of the banknote, the store of value needs stability. Therefore, it is essential to consider how to make cash safer, more modern, and less volatile over time".

The relationship of the Swiss with cash is evident from figures provided by the Swiss National Bank (SNB), which indicate that each individual in the country holds approximately CHF 10,000 in cash. Consequently, a future without banknotes and coins appears unlikely at this time. "At present, banknotes and coins are the only way for the general public (non-banks) to hold 'central bank money', i.e. directly issued by the SNB. The social cost of eliminating cash would be significant. Cash is not only a highly valued medium of exchange and store of value, but it also serves as a way to diversify payment methods and how people hold their possessions. It's important to consider not only the costs associated with the production, distribution, and disposal of cash but also the broader social consequences that would arise from its removal."

The new banknotes will be dedicated to Swiss topography; each denomination will represent a specific region to show the diversity of the Swiss landscape. The first series of banknotes produced by the Swiss National Bank (SNB) on an interim basis was introduced in 1907.

The interview with Professor Edoardo Beretta carried out by TeleTicino is available at the following link (first report), while the one edited by Dimitri Loringett for Corriere del Ticino is available at the following link. (both Italian only).