Economy, Business And Markets

Swiss Sovereign Money Initiative Set for Failure

Swiss Sovereign Money Initiative Set for FailureSwiss Sovereign Money Initiative Set for Failure

A radical “sovereign money” plan that would upend Switzerland’s traditional monetary system appears headed for defeat in a referendum next month, a poll showed on Friday, Reuters reported. The survey by the gfs.bern polling outfit found 49% of respondents opposed the plan, while 35% were in favor and 16% were undecided or had no opinion. The sovereign money campaign, which has gathered more than the 100,000 signatures needed to trigger a binding referendum under the Swiss system of direct democracy, would bar commercial banks from “creating” new electronic money every time they give credit. Only the Swiss central bank would be allowed to increase the money supply. Switzerland risks being plunged into an “unnecessary and dangerous experiment” if it adopts the scheme on June 10, Swiss National Bank Chairman Thomas Jordan warned on Thursday. Parliament and the government also oppose the unprecedented idea. The poll surveyed 563 people and had a margin of error of 2.9 points.

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