The Swiss President said that the current form of the Facebook Libra project is unsuccessful and requires "reprocessing" to get approval. Switzerland is the headquarters of the Libra Association, which needs to be recognized by the regulators here.
The Swiss Finance Minister and outgoing President Ueli Maurer told local media:
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"I don't think (the current form of Libra will be approved) because the central bank will not accept the basis of a currency package."
He added in the interview:
"This project, in its current form, has failed."
Libra has not commented on this.
The digital currency led by Facebook is expected to be issued and managed by the Libra Association in Geneva, which has raised concerns among regulators and politicians, including privacy issues, the impact on monetary policy and the possibility of changing the global financial landscape.
The team members in charge of the project-including Facebook's David Marcus-have said that regulatory resistance could prevent it from launching in June as originally planned, and it is likely to be delayed.
This cryptocurrency will be supported by reserve assets, such as bank deposits and government bonds, both held by members of the escrow network. The organization believes that this structure means promoting trust and avoiding price volatility like other cryptocurrencies.
Despite regulatory hurdles, last month Libra announced partnerships with 30 projects over a two-month period and the testnet processed 51,000 transactions.
In addition, earlier this month, Libra updated its white paper to eliminate dividend payments to investors in addition to eliminating potential conflicts of interest. This change is considered to prevent the asset from being classified as a security.