Mubasher: Switzerland is set to hold a referendum that could change the scene of its banking and financial industry.

Voters will decide on the sovereign money initiative, which aims at limiting the issuance of new money to the central bank.

The Swiss National Bank accounts for only 10% of the country's monetary supply, with the rest being created by commercial banks, in the forms of electronic or book money by lenders.

If the majority of voters support the initiative, then the Swiss National Bank will alone be able to create electronic money.

The move is challenged by harsh criticisms that it is bringing the banking sector to the dark ages, while other believe it could help pace speculations and the rising debt bubbles.

Source: Mubasher

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