- Libra association seeks the regulatory approval from Switzerland
- FINMA, the financial authority of Switzerland, has been asked to look into the matter
Starting the Bumby Road
Libra Association, the non-profit organization behind Facebook’s planned Libra Stablecoin project, recently submitted an application seeking regulatory approval from Switzerland’s Financial Market Supervisory Authority or FINMA. Libra has planned to set up its headquarters in Switzerland, for which it will need a payments license from the authorities there.
“With a principle-based and technology neutral regulatory framework, along with regulatory clarity on blockchain-based business models, Switzerland offers a pathway for responsible financial services innovation harmonized with global financial norms and strong oversight.”
The announcement, which starts off with mentioned Libra as “A Global Low-Friction High-Security Payment System Can Empower Billions of People”, states how it plans to pursue payments license with will allow it to move ahead with its plans for Libra Coin.
With the recent news of Libra hiring several political lobbying firms after its backlash from the US government, they plans to make this application as smooth as possible, without damaging its image anymore. One Congressperson also commented on their apparent concern with Libra by stating “My concerns remain with allowing a large tech company to create a privately controlled, alternative global currency”. Libra will now have to strategize all of their moves before making any more moves as the entire financial community around the world have their eyes set on them.
It might be a good sign for Libra if FINMA successfully approves their application. Libra will then be able to concentrate on finalizing their stablecoin and rolling it out as planned.