The Swiss federal government confirmed on December 22 that it would hold a referendum to determine the authority of the country’s commercial bank in money creation.
The government’s announcement followed a campaign by the Swiss sovereign money movement known as the Vollgeld Initiative which presented a successful petition signed by more than 110,000 people calling on the government to donate to the central bank the exclusive power and authority to create money in the financial sector. system.
The Swiss sovereign currency campaign has been called a popular initiative, a feature of Swiss direct democracy that states that the federal parliament is obliged to discuss an initiative if 100,000 citizens (2.5% of the electorate) sign a form.
âThe federal parliament is obliged to discuss the initiative, it can decide to recommend or reject the initiative or it can propose an alternative. Whatever they choose to do, all citizens will ultimately decide in a referendum to accept the initiative, the alternative proposal or to remain unchanged â, read the official document of Swiss direct democracy.
If the referendum goes through parliament and final confirmation, the federal government will give its central bank a complete monopoly on the creation of both physical and electronic money.
Interestingly, in recent years the Swiss Sovereign Money campaign has stated that over 90% of the money circulating in the Swiss financial system exists in the form of electronic money. Thus, the group predicts that there is a strong possibility that the central bank will consider deploying an independent digital currency or an electronic form of money to eliminate cash.
“Due to the emergence of electronic payment transactions, banks have found the possibility of creating their own currency”, declared the Swiss Sovereign Money campaign.
“Banks will no longer be able to create money for themselves, they will only be able to lend money that they have to savers or other banks,” added the group.