Facebook's Libra has failed in current form, says Swiss president
[ZURICH] Facebook's Libra project has failed in its current form and needs reworking to be approved, said the president of Switzerland where the cryptocurrency is seeking regulatory consent.
"I don't think (Libra has a chance in its current form), because central banks will not accept the basket of currencies underpinning it," Ueli Maurer, who is Switzerland's finance minister and outgoing president, told Swiss broadcaster SRF.
"The project, in this form, has thus failed," he added in an interview.
Libra did not immediately respond to a request for comment.
Plans for the Facebook-led digital currency, which is to be issued and governed by the Geneva-based Libra Association, have raised concerns among regulators and politicians ranging from privacy to its potential to influence monetary policy and change the global financial landscape.
Officials running the project, including co-creator David Marcus of Facebook, have said regulatory hurdles could see the launch delayed beyond the planned June date.
The cryptocurrency is to be backed by a reserve of assets such as bank deposits and government debt held by a network of custodians.
That structure is meant to foster trust and avoid the price swings that plague other cryptocurrencies.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Weak yen pressures Bank of Japan’s interest rate decision
Basel Committee adds climate risks to banking supervision standards
Crypto firm sues SEC to fend off oversight of Ethereum
Great Eastern chairman appeals for patience as shareholders fume over share price ‘disaster’
S&P Global first-quarter profit beats estimates on strong product demand
Thai banks cut rate for some borrowers after push from PM