First retail bank to charge customers for holding cash
Adam Pike, News Editor
24 Nov 2015, 12:45 p.m.
Swiss bank, Schwiez, is the first to charge customers for depositing money in an ordinary checking account. This week the bank wrote to their customers telling them they will be charged a negative rate of -0.125% for depositing money and -0.75% if the balance exceeds 100,000 Swiss francs.
Worryingly, Bank of England Chief Economist Andy Haldane believes negative interest rates should be considered as a policy option if the economy enters another economy crisis. The Bank of England have kept rates on hold at 0.5% for over six years.
Mr Haldane suggested one way around the problem of customers withdrawing cash from their accounts and hoarding it at home would be to eliminate cash and introduce a digital currency to which a negative rate could be applied.
Haldane said, “This would preserve the social convention of a state-issued unit of account and medium of exchange… But it would allow negative interest rates to be levied on currency easily and speedily.
Sound money and having the ability to freely buy goods and services is at the heart of a true capitalist society. We have already surrendered to a credit based monetary system, should we surrender our right to hold physical cash and allow the banks and government to know our every move we will be one step closer to a totalitarian society.