Switzerland expressed its mercy to Facebook’s cryptocurrency Libra
The Swiss government has attempted to show more friendly on the Facebook-led Libra project after the country’s ex-president called the project a failure.
Published Jan. 15, the government memo stressed the country’s government has not ruled out the possibility Libra could one day receive their approval. Swiss officials will continue to follow the project, paying special attention to the form that Libra may have in the future.
It could mean the Swiss government wants to enfeeble its stance on Libra and show its recognization to the value of an international payment solution. The nation open to projects that reduce the cost of cross-border payment transactions and seek to promote financial inclusion.
The news releases weeks after Swiss Finance Minister and country president Ueli Maurer surprised industry observers with a straight statement to Swiss television on Dec. 27 that regulators would not approve Libra anytime soon.
He stated Libra will not work in its current form because the central banks have not welcomed massive currencies that will back the stablecoin. He said that due to this form of the project, it failed.
Switzerland had initially welcomed the project after the Libra Association said it would set up its headquarters in the country’s banking capital of Geneva. The Swiss State Secretariat for International Finance welcomed the act, describing it as a positive sign that Switzerland could play a role in an ambitious international project.
The positive reaction may somewhat have been a response to international pressure when regulatory attitudes towards Libra solid in the months after it was revealed.
Previously, U.S. politicians expressed anxiety that Libra would challenge the U.S. dollar’s supremacy and harm users with new technology. France’s finance minister also said Libra would harm countries’ monetary sovereignty and the European Union should stop its development.
The Libra Association said it planned to apply for a license as a payments system in the country. In response, FINMA said the project would possibly deal with strict banking rules on top of harsh anti-money laundering controls. FINMA’S CEO later clarified that although Swiss law was non-negotiable, the regulator was able to stop such a project and would regulate Libra with an “open mind.”
Although Libra had previously confirmed to a firm June 2020 launch date, Bertrand Perez, managing director of the Libra Association, it could be pushed back by one or two quarters to ensure regulators are fully comfortable with its solutions.
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