The Beijing 2008 champion, who could finish only seventh in London four years ago after being affected by a crash in the road race, was totally dominant as he beat Tom Dumoulin into second and Tour de France champion Chris Froome into third.
Cancellara left this year's Tour de France early — after seeing the peloton pass through his native country — to focus on the Olympics.
His Olympics gold came a day after Heidi Diethelm Gerber from the canton of Thurgau picked up Switzerland's first medal at the Rio Games, winning bronze in the 25m pistol shooting event.
Gerber qualified for the Games after winning gold at last year's European Games in Baku.
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