Swiss Federal Council Continues to Monitor Stablecoins and Blockchain

Published at: Oct. 16, 2019

The Swiss Federal Council is continuing to keep close tabs on global stablecoin projects and their possible opportunities and challenges.

Switzerland is seen as very crypto-friendly

In a news release on Oct. 16, the Swiss Federal Council stated that it was recently informed about “current opportunities and challenges associated with stablecoins” and that Switzerland will continue to monitor new digital technology developments, such as blockchain and distributed ledger technology.

The Federal Council states that, while the mountainous European country is generally seen as very crypto-friendly and “open to innovative approaches in the financial market,” it remains committed to addressing the risks related to stablecoins and cryptocurrencies, saying:

“The Federal Council is committed to ensuring that the currency and stability policy challenges, in particular, are addressed through international cooperation between governments, central banks and supervisory authorities, with private providers also included.”

The seven-member executive council further noted that Facebook’s Libra coin, which is to be overseen by the Geneva-based Libra Association, would be exposed to limited volatility thanks to being backed by a basket of stable fiat currencies.

Libra seeks Swiss payment license

Cointelegraph previously reported that the Libra Association — the governing body of Facebook’s eponymous stablecoin project — was required to obtain a payment system license from Switzerland’s Financial Market Supervisory Authority (FINMA) for Libra. The association’s head of policy and communications, Dante Disparte, said at the time:

“We are engaging in constructive dialogue with FINMA and we see a feasible pathway for an open-source blockchain network to become a regulated, low-friction, high-security payment system. This is an important step in Libra project’s evolution, and we look forward to continuing our engagement with all stakeholders over the coming months.”

Tags
Blockchain
Cryptocurrencies
Facebook
Switzerland
Libra
Related Posts
Facebook-backed Libra welcomes Blockchain Capital as new member
The Facebook-initiated Libra blockchain project continues to grow as its governing body adds a new major industry partner. Blockchain Capital, one of the largest venture capital firms in the blockchain industry, has joined the Libra Association, according to an official announcement Friday. Alongside the other 26 association participants, Blockchain Capital will now be working to create a “more equitable payment system” with Libra. Bart Stephens, co-founder and managing partner at Blockchain Capital, said, “Leveraging blockchain technology to improve financial access and promote innovation has been at the core of Blockchain Capital’s portfolio strategy.” The Libra Association was formed in June …
Blockchain / Sept. 18, 2020
Crypto Banking Regulation Around the World, First Signs of Growth
Banking is often seen as the antithesis of Bitcoin (BTC), the very industry the nascent protocol looks to defuse and disrupt. Ironically, many banks are desperately in need of the attributes and facilities afforded by cryptocurrencies — specifically blockchain, their underlying technology. Perhaps then, it’s not too surprising that more and more cryptocurrency banks are springing up, offering an alternative to tired legacy systems and allowing room for an emerging asset class. However, some significant hurdles remain for these emerging institutions. Regulatory uncertainties are rife within the world of cryptocurrency banking. Ill-equipped regulatory bodies often attempt to pen in budding …
Blockchain / Sept. 4, 2019
After Switzerland Visit, Crypto Concerns Remain for US Regulators
Following a visit to Switzerland to meet with the country’s financial regulators, United States lawmakers are still concerned over Facebook’s proposed cryptocurrency project, Libra. Meetings with multiple agencies According to an official statement from Representative Maxine Waters published on Aug. 25, members of the U.S. House of Representatives Financial Services Committee met with multiple regulatory agencies and lawmakers. These included the State Secretariat for International Financial Matters, the Federal Data Protection and Information Commissioner, and the Financial Market Supervisory Authority. As announced earlier this month, the representatives aimed to clarify how various Swiss authorities would regulate Libra and learn more …
Blockchain / Aug. 25, 2019
Libra Association Seeks Swiss Payments License for Stablecoin
The Libra Association, or which Facebook is a member, is seeking a payment system license under Switzerland’s Financial Market Supervisory Authority (FINMA) for its planned stablecoin project, Reuters reported on Sept. 11. “Regulated, low-friction, high-security” blockchain payments In an official statement today, the Switzerland-registered Libra Association — a not-for-profit membership organization established to govern the Libra network — Dante Disparte, the Libra Association’s head of policy and communications, said of the choice to coordinate with Swiss regulators: “We are engaging in constructive dialogue with FINMA and we see a feasible pathway for an open-source blockchain network to become a regulated, …
Blockchain / Sept. 11, 2019
Switzerland’s Crypto Valley Association Head Says CBDC Is a Good Idea
In an exclusive interview with Cointelegraph, Crypto Valley Association President Daniel Haudenschild said that central bank digital currencies are “the next logical stage.” Haudenschild explained to Cointelegraph that he believes CBDCs are the next stage “in evolution for decentralized finance.” He also claimed that there are currently 34 CBDC projects. According to him, such digital currencies represent a new era of governments and traditional finance that recognize the potential of digital assets. Central banks innovate to avoid being left behind Fear of being left behind, Haudenschild admitted, is a major force driving countries to innovate, “Undoubtedly, the drive of digital …
Blockchain / March 6, 2020