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Cash makes a comeback in Switzerland during pandemic

Summary:
At the beginning of the pandemic there were calls to avoid using cash for sanitary reasons. Contactless electronic payment was the recommended method of transacting. © Maksym Kapliuk | Dreamstime.comLast spring cash withdrawals from cash machines sank by 50% in Switzerland, according to the SIX Group. Across the whole of 2020, cash withdrawals from Swiss cash machines was down 23% and contactless payments were up, according to Le Temps. However, despite rising cashless payments and reduced use of cash machines, the volume of cash demanded rose, a phenomenon observed in Switzerland and the eurozone. And the trend intensified during the pandemic with the value of euro notes in circulation rising 11% in 2020. What is going on? In times of crisis people save more, something that

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At the beginning of the pandemic there were calls to avoid using cash for sanitary reasons. Contactless electronic payment was the recommended method of transacting.

© Maksym Kapliuk | Dreamstime.com

Last spring cash withdrawals from cash machines sank by 50% in Switzerland, according to the SIX Group. Across the whole of 2020, cash withdrawals from Swiss cash machines was down 23% and contactless payments were up, according to Le Temps.

However, despite rising cashless payments and reduced use of cash machines, the volume of cash demanded rose, a phenomenon observed in Switzerland and the eurozone. And the trend intensified during the pandemic with the value of euro notes in circulation rising 11% in 2020.

What is going on?

In times of crisis people save more, something that intensified in Switzerland and the eurozone during the Covid-19 crisis. Much of the growth in demand for cash was for large denominations, the kinds of notes kept as a store of value rather than transacting. Another driver of this trend is low interest rates. Cash provides the same return as money held in a bank account.

More on this:
Le Temps article (in French) – Take a 5 minute French test now

Cash makes a comeback in Switzerland during pandemic

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