This article was published on January 2, 2020

Swiss president: ‘Libra has failed’

It looks like Libra will have to go back to the drawing board

Swiss president: ‘Libra has failed’

It’s not even a week into the new year and already Facebook’s “cryptocurrency” project Libra is coming under fire once again. This time, Switzerland is speaking out against the digital coin.

Speaking to Swiss broadcaster SRF, the country’s president and finance minister Ueli Maurer said the project has failed, Reuters reports. He believes banks won’t accept Libra in its current form:

“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 project, [Libra] in this form, has thus failed.”

That’s all well and good, but what if central banks don’t have to accept it? Banks don’t have to accept cryptocurrency, because exchanges allow users to convert their digital assets to fiat.

If banks do refuse Libra, whether that will create an issue for Facebook remains to be seen.

Facebook’s original announcement stated that Libra should launch at some point in early 2020. However, given the lack of support from financial regulators it isn’t looking probable.

The original plan was for a basket of fiat currencies, including: US dollars, Euro, and Pound Sterling, to back Libra. It was said this should help its value remain stable.

Facebook’s “cryptocurrency” project Libra has been under fire since it was announced last year.

Switzerland-based Libra Association Board members have criticized Libra for its lack of a coherent launch plan, EU regulators have challenged the project, and the US Senate dragged it across the coals in a series of hearings. There is so much drama surrounding the project, that it feels more like a soap opera than a digital currency.

With Maurer’s statement, though, it seems Facebook will have to go back to the drawing board if Libra is going to satisfy global governments and relevant regulatory bodies.

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