Swiss Authorities Question Libra’s Suitability as New Crypto

Swiss Authorities Question Libra’s Suitability as New Crypto

Facebook’s cryptocurrency Libra is still stack in limbo this year. The Social Network planned to launch the project in 2020, but it seems, this plan may unravel. Swiss finance minister Ueli Maurer questioned Libra’s suitability as a global currency. He declared that Switzerland can’t approve Libra as it is now. In his interview with Swiss broadcaster, SRF, Maurer added that national banks hadn’t accepted the basket of currencies, which Libra proposed as it’s back up.

Nils Reimelt, the consultant of Capco Digital in Zurich, noted that the SEC also expresses concern about Libra, based on the fear, that it is unproven technology and can rival the U.S. dollar. So other governments, Swiss included, prefer to wait until SEC’s approval. 

Such an approach is quite a dramatic change from the openness, with which the Swiss authorities first met Facebook’s idea. The change of heart may be caused by the Securities & Exchange Commission. After its release, the U.S. and European politicians became worried about currency sovereignty. They fear that Libra can become a magnet for financial criminals. And there is also the case of Facebook’s record on misuse of data. All in all, these reasons caused the Swiss government to become more careful when addressing Libra.

Meanwhile, the Libra Association announced that while some governments and regulators have new questions about the project, they take these issues very seriously and are working hard to answer satisfactorily.

Facebook Hopes to Launch Libra in 2020

Facebook expressed that its objective is to find a way to launch a fast, secure, and compliant international payment system. To achieve this goal, the company is ready to begin a dialogue with all concerned parties.

Libra’s chief operating officer, Bertrand Perez, is planning to speak on Monday at the Geneva Blockchain Congress. He announced in September that Libra’s introduction depends on discussions with regulators. That’s why Perez cannot say definitely when they will be able to launch the project.