Connect with us

Hi, what are you looking for?

ELEVENEWS

Facebook

Facebook’s Libra has failed in current form, says Swiss President

The basket of assets backing Facebook’s Libra stablecoin needs to change in order for the project to be accepted by regulators, according to Switzerland’s President.

“Central banks will not accept the basket of currencies underpinning it”

Reuters reported on Dec. 27 that Swiss finance minister and outgoing president Ueli Maurer said that Libra won’t be approved because central banks won’t accept the basket of currencies behind it. 

He concluded:

The project, in this form, has thus failed.

Libra’s conflict with regulators

Earlier this month, Libra’s whitepaper was updated to remove dividends payable to those investors, aside from eliminating a potential conflict of interest. The change is thought to be introduced to avoid the asset being classified as a security. 

The announcement came after some United States lawmakers sponsored a bill defining stablecoins as securities. Libra, on the other hand, insists that its stablecoin is a commodity.

Meanwhile, the United States is not the only country pushing back against the proposed Libra project. In November, a draft document to be discussed by the European Union’s finance ministers stated that impeding Libra’s development is an option on the table. 

Also last month, Libra announced that despite the regulatory concern over the project, the development has gone forward with 30 projects and 51,000 transactions having already been logged on the test network over the two previous months.


source : fxstreet

Advertisement

You May Also Like

Libra

Ripple CEO Brad Garlinghouse is adamant that Facebook’s unveiling of its Libra cryptocurrency will lead to big business for his banking software and cryptocurrency...

Ripple

When thinking about investing in Ripple (XRP), the digital coin that runs on the Ripple’s payment blockchain system, traders ought to consider what function Ripple might play...

Criptodivisas

(PRLEAP.COM) Superior Coin, a global Cryptocurrency company (www.superior-coin.com), announced today the unique use of it’s blockchain technology in regards to privacy, and security. With...

Ripple

Many of the investors are looking for cryptocurrencies which can actually rise significantly in 2018. Most of the investors are looking at the lesser...

Copyright © 2020 Elevenews