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Almost every city had its own banknotes
In the past a number of banks were allowed to issue their own banknotes. In Switzerland there were 28 such banks as recently as 1870. Such a large number could not help but cause confusion, thereby precluding general acceptance of, and confidence in, banknotes. The federal government therefore set about regulating the issue of banknotes.
It gradually became clear that the best solution would be a single, central institution to issue banknotes. Such an institution would be best placed to create confidence and keep the value of the currency stable. As the idea of establishing a central bank found more and more supporters, the principle was laid down in the Constitution in 1891. There were still a few hurdles to overcome, though, before the Swiss National Bank commenced operations in 1907. It has the sole right to issue banknotes. The minting of coins, however, is still the responsibility of the Confederation.
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In Switzerland the Swiss National Bank is the only institution with the right to print and issue banknotes.
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