Swiss President Calls Facebook’s Libra A Failure

The Swiss president, Ueli Maure, together with the finance minister, stated today that Libra has been unsuccessful in its current form and needs approval for some reworking. He also cited that Libra does not stand any chance, as central banks would not allow any virtual currency that will underpin it. At present, cryptocurrency is looking for an administrative confirmation from the country. Furthermore, the Facebook’s Libra plan to be governed and directed by Geneva-based Libra Association has raised problems among politicians and regulators as it will influence monetary policy, breach the privacy and will financially change the global landscape.

Facebook’s Libra Plan In Switzerland

Libra is intended to be supported by financial resources such as government debts owed by a network of custodians and bank deposits of the country. This type of structure will bypass the price swings that bother other cryptocurrencies as well, which, in turn, will build more trust in the country. Facebook’s co-creator Davis Marcus, among other officials involved in the project stated that these regulatory hurdles from the country could delay Libra’s launch that was earlier scheduled for June.

Libra Will Lose Country’s Sovereignty

Countries and central banks are the authorities that can lawfully issue currency. According to them, cryptocurrencies can give a severe blow to their sovereignty. In October, Bruno Le Maire, the French Economy Minister bluntly expressed his concerns, stating that European soil is not ready to welcome Facebook’s Libra. Previously, in a meeting between the International Monetary Fund and World Bank, Maire cited that they will take steps with Germans and Italians, as their sovereignty is at stake. 

Earlier, in Frankfurt’s speech, Fed Governor Lael Brainard stated that if stable coins are allowed without necessary safeguards, they will put consumers at risk. He also added that cryptocurrencies have gone through numerous staggering losses earlier due to theft and fraud.

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