Swiss President: Facebook’s Libra Has Failed In Its Current Form

The latest cryptocurrency news bring us the Swiss president who recently debated on the topic of cryptocurrencies and said that Facebook’s Libra stablecoin needs to change. The main point that he carried out was linked to the stablecoin changing in order for the project to be accepted by regulators.

As reported by Reuters on December 27, the Swiss finance minister and outgoing president Ueli Maurer noted that Libra won’t be approved because central banks simply won’t accept the basket of currencies behind it.

“The project, in this form, has thus failed,” he noted.

The Swiss president also talked about cryptocurrency in general. When it comes to the latest Libra news, we could see that earlier this month the whitepaper of the expected stablecoin was updated in order to remove dividends payable to those investors, aside from eliminating a potential conflict of interest. This change is thought to be introduced in order to avoid the stablecoin being classified as a security.

“I don’t think (Libra has a chance in its current form), because central banks will not accept the basket of currencies underpinning it,” the Swiss president also noted in an interview with the Swiss broadcaster SRF.

The announcement and talk by the Swiss president also came after some lawmakers in the United States sponsored a bill in which they defined stablecoins as securities. Libra, on the other hand, insists that the stablecoin is a commodity.

Meanwhile, we can also see that the United States is not the only country which is pushing back against the Libra project. The news before showed that a draft document was potentially discussed by the European Union’s finance ministers – noting that Libra’s development is an option on the table.

We could also see that last month, Libra announced that despite the regulatory concerns over the project, the development is going well – and there were reportedly 30 projects and 51,000 transactions already been logged on the test network over the two previous months. Despite the Swiss president and other people labeling the project as a failure, the team at Facebook tries to prove everyone wrong.

Libra may also come to life in a market that is bullish, if the stabilization continues.