The Federal Council has rejected an initiative which would have enshrined in the constitution that cash should be maintained. The government says the wording was not precise enough.
But the government says it does recognise the importance of cash in the economy and has come up with a counter-proposal.
It says it can use existing laws to ensure cash will stay.
The campaigners behind the first initiative have now come up with a second which will ensure people can still pay for public transport and parking with cash.
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