The Libra Association is requesting a payments license from the government of Switzerland – more specifically the Switzerland’s Financial Market Supervisory Authority (FINMA) for its planned stablecoin project, according to reports on Reuters.
An official statement today in the latest cryptocurrency news shows that the Switzerland-registered Libra Association – which is a not-for-profit membership organization established to govern the Libra Network. The document explained how Libra Association is requesting a choice to coordinate a regulatory framework with the Swiss watchdog. It also says:
“Switzerland offers a pathway for responsible financial services innovation harmonized with global financial norms and strong oversight. We are engaging in constructive dialogue with FINMA and are encouraged to see a feasible pathway for an open-source blockchain network to become a regulated, low-friction, high-security payment system.”
As many best cryptocurrency news sites report, the FINMA has notably released guidance on regulatory requirements for payments on the blockchain – which applies to the blockchain service providers including exchanges, wallet providers and trading platforms.
Now that the Libra Association is requesting a Swiss payments license, the new guidance adheres to the framework for digital asset regulation. This was issued this June by the intergovernmental Financial Action Task Force (FATF) which includes numerous provisions for Anti Money Laundering (AML) measures, Know Your Customer compliance, systems for risk monitoring and more.
Earlier this week, the United States Treasury official had told reporters in Geneva that it was imperative that the Libra project should satisfy the highest standards for combating money laundering and countering terrorism financing if it is to be approved by the lawmakers and regulators.
While the Libra Association is requesting a Swiss payments license, a hearing before US representatives in mid-July this year featured David Marcus – the chief of Facebook’s Calibra wallet service – talking about the choice and how it “nothing to do with evading regulations or oversight.” Marcus’ statement was in the coming altcoin news because he argued that the jurisdiction is an international hub conducive to doing business.
In August this year, some US lawmakers visited Switzerland to meet with the local financial regulators and discuss officials about Libra, expressing the “concerns […] with allowing a large tech company to create a privately controlled, alternative global currency.”
Central Banks Will Meet With Libra Founders In Switzerland Today
PayPal Has Same Banking Ambitions With Facebook’s Libra
“The goals and ambitions of Libra are very consistent with PayPal’s overall ambitions in terms of serving the underserved, democratizing access to capital.”She pointed out that the position of the company on the matter is that they do believe in the potential of Libra. It is safe to say that the Libra association and project could use some words of encouragement and support as the times have been better for the project. For example, France’s economy and finance minister Bruno Le Maire noted that the country will block the project in the entire EU because of the major concerns about threatening the sovereignty of the national currencies. Also, the head of blockchain policy ad Germany’s Christian Democratic Union Thomas Heilmann noted that the government will reject projects such as Facebook’s Libra. Despite all that negativity around the project, the social media giant pushes with their idea forward and with the development of the project as well. According to Bertrand Perez who is the general director of the Libra Association, they will likely launch the crypto project at the end of 2020 as per the reports in the latest cryptocurrency news.
Facebook Libra To Launch In H2 Of 2020: Libra Association Chief
“We don’t want to become a new BlackRock,” Perez told Les Echos. "That’s why these concerns about the destabilizing effect our reserve currency could have on central banks’ fiat currencies — which figure in our basket — seem unfounded to us.”Facebook Libra to launch in 2020 is already one of the hottest topics on many best cryptocurrency sites. Perez confirmed this and said that upon launch, Libra would be tied to a selection of major world currencies - but not the Chinese yuan. As we reported in the coming altcoin news before, Beijing is putting the finishing touches to its own digital currency. Meanwhile, central bank officials heard the news about Facebook Libra to launch in 2020 - and voiced direct worries of their own about Libra and its backing. Nonetheless, Perez remains confident that all of the regulatory hurdles will be solved before the launch by Facebook. As he concluded:
“The year we’ve taken prior to release will allow us to iron out all the problems.”
Libra-Like Tokens Are A Threat To Swiss Bank’s Monetary Policy
‘’As long as prices, wages and loans are set in Swiss francs, the SNB can influence incentives for savers and borrowers via its monetary policy and thus ensure price stability over the medium term. However, if stablecoins pegged to foreign currencies were to establish themselves in Switzerland, the effectiveness of our monetary policy could be impaired.’’Jordan is not alone in his stance. Yves Mersch stated on Sunday as a member of the European Central Bank that the widespread adoption of Libra will be perceived as a threat to the ECB’s ability to manage monetary policies:
“Depending on Libra’s level of acceptance and on the referencing of the euro in its reserve basket, it could reduce the ECB’s control over the euro, impair the monetary policy transmission mechanism by affecting the liquidity position of euro area banks, and undermine the single currency’s international role, for instance by reducing demand for it.’’Besides Libra, the SNB head also mentioned Bitcoin saying that it has a massive influence into the way we perceive ‘’crypto tokens’’ in general. According to him, it is very highly unlikely that cryptocurrencies will be used as means of payment in Switzerland. A central bank can issue its own digital token which is pegged to cryptocurrency but Jordan would rather choose another approach in which the tokens issued by the central bank are only available to commercial banks and other institutions as we read in the latest cryptocurrency news before.
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