According to a Bloomberg report, Swiss financial regulators are expressing doubt over Facebook Libras current infrastructure. The report claims that regulators in Switzerland might not approve Facebook Libra unless it undergoes some serious revisions.
Why Switzerland
Like many other projects in the crypto sector, Facebook Libra opted to set up shop in Switzerland due to its friendly regulation towards innovative crypto projects. Despite its small geographical size, Switzerland is a behemoth when it comes to the crypto industry. At the time, a member of the Swiss parliament even extended a warm welcome to the project.
Changing Fortunes
Despite the initial warm welcome, Swiss officials do not seem to be very comfortable with the project right now. According to a Bloomberg report, the Swiss financial, who is also the federal president, said that the project would not be allowed in the nation in its current form.
In an interview with the national broadcaster, the finance minister said that Facebook Libra had failed. According to him, the basket of fiat currencies that Facebook Libra was planning to use had not been approved by the issuing central banks.
This unfriendly stance towards the project is a marked difference from the initial warm welcome the project was given. At the time, Facebook also praised Switzerland called it a hub of international cooperation.
Libra Money Laundering
Due to Facebook’s recent issues with the handling of user data and the use of crypto in money laundering, many regulators globally have been reluctant to support the project. This is especially so amongst regulators in Europe and the US. They are concerned that Libra would make it too easy for criminals to get away with illegal financial activities.
As a result, many regulators have called for strict rules to be imposed on the project if it launches. Most regulators want Facebook Libra to be regulated under similar strict rules that govern banks globally. The concerns over the project association with Facebook are so deep that Zuckerberg told regulators he was willing to pull Facebook out of the project if it meant it would be approved.
Facebook Libra Launch Date Uncertain
Initially Facebook Libra planned to launch the coin in 2020. However, the exact date for the launch has never been revealed. With growing uncertainty from regulators, including Swiss regulators, the launch seems more unlikely. Many in the crypto sector have expressed doubt on whether Facebook Libra will ever launch.
Just recently, Vodafone quit the project, according to a BBC report. Vodafone is a major global international telecommunications firm and was no doubt an important partner in Facebook Libra. Its loss will be a major blow to Facebook Libra. This makes the launch of the project even more unlikely.
Failure to Plan
In the past, members of the Facebook Libra Association have expressed frustration with the lack of planning before the launch. It is claimed that Zuckerberg and his team underestimated the blowback the project would face, especially in light of the data mismanagement scandal. Thus far, the Libra Association has not made any changes to its launch schedule.
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