Swiss shift to digital payments opens door for stablecoins

Switzerland is witnessing a significant shift towards digitalisation. A new survey shows debit card payments have surpassed cash for the first time.

In 2024, 35% of in-store purchases were made with debit cards, compared to 30% using cash. It marks a major change from 2017 when cash accounted for 70% of payments.

While Switzerland has traditionally favoured cash, especially for privacy reasons, the trend towards digital payments is undeniable.

The shift is partly attributed to the pandemic, which accelerated the move away from cash. According to economist Alexander Koch, countries like Switzerland, traditionally attached to cash, are now following international trends.

The cultural change indicates a broader willingness to embrace digital forms of payment. In Switzerland, 18% of payments are made via mobile apps, while credit cards make up 14%.

With digital payments on the rise, experts are seeing increased potential for stablecoins and tokenised assets.

Dominic Weibel from Bitcoin Suisse AG believes that the growing use of mobile payment apps sets the stage for Swiss stablecoins to thrive. He suggests tokenised Swiss francs could soon be integrated into mobile apps.

Despite the growing digital shift, the Swiss National Bank (SNB) remains cautious about introducing a central bank digital currency (CBDC). However, institutional engagement with blockchain and digital bonds continues to grow. It suggests that Switzerland’s digital future is on track.

For more information on these topics, visit diplomacy.edu.