Is the multi-asset support setup a failure? Swiss president thinks Libra needs "rework"

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.

libra

The Swiss Finance Minister and outgoing President Ueli Maurer told local media:

"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.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Korean or Korean? Bittrex Dreams New York

In June 2015, the New York Financial Services Department (NYDFS) became the first pioneer to develop a regulatory fra...

Blockchain

The FATF's strongest regulatory new regulations have come, and the exchange's "resistance" will be held at the end of the month.

The world's mainstream cryptocurrency market – the United States, Japan, South Korea, China, how long is i...

Blockchain

The essence, risks and new opportunities of exchanges from the perspective of monetary finance

Why do you understand that the exchange must first understand the bank? Where are the new opportunities for the excha...

Blockchain

Read the article Bakkt: cryptocurrency of the New York Stock Exchange

At the Bakkt Digital Assets Summit held last week at the New York Stock Exchange, more than 150 investors around the ...

Blockchain

The compliance exchange is about to appear in Singapore?

On December 18, 2019, the official website of the Monetary Authority of Singapore (hereinafter referred to as "M...

Blockchain

Extreme market challenges major contract exchanges, BTCC contract performance is outstanding

On Friday, Bitcoin ushered in three surges in a short period of time, with a gain of more than 20%. The currency circ...