The Swiss Financial Market Supervisory Authority (FINMA) released a statement via their CEO, Mark Branson, where they state that they will not discriminate against Libra. Instead, they fear the projects that are being developed in the dark corners of the world.
Three months prior, Facebook announced their bold move of developing their own cryptocurrency: specifically, a stablecoin they dubbed Libra. Stablecoins are an offshoot of cryptocurrencies that have a set value of assets attached to them. This dramatically reduces the volatility of a cryptocurrency and makes it behave a bit more like a conventional one. This is a stark contrast to the Bitcoin, the first cryptocurrency to develop and is well known for its rather extreme volatility, jumping hundreds of dollars up or down in a single day.
Facebook is planning to launch Libra in June 2020.
Concerns and Opposition
Libra has recently come under fire in Europe, with France and Germany displaying clear intent to try and block the cryptocurrency from reaching EU shores. Both parties are concerned about the possible effects of Libra, should it start to overtake a country’s currency and, at worst, replace its day-to-day use within it. The potential financial disruption that would cause is both obvious and clear. If it would happen is still very much up for speculation.
FINMA Treats Libra Fairly
While Libra is getting a chilly reception in France and Germany, Switzerland plans to treat Libra fairly. The country already hosts a staggering 700 blockchains within it, and Libra would just be another on the list.
However, Mark Branson made it absolutely clear that Libra will be made to follow the strict rules they apply to banks. Along with this, they have to comply with the hard-hitting anti-money laundering laws. He stated that they will intentionally complicate Libra’s development, but will not be playing favorites either. He explicitly stated that their rules aren’t negotiable.
Fear of the Dark Corners
What truly scares FINMA isn’t the cryptocurrencies they’re allowed to regulate, says Branson. He stated that he’s far more concerned about projects developing on dark corners of the internet. These projects have the potential to only come to public view when it’s already too big to stop. An amusing thought, considering Bitcoin can be regarded as one of those things to many people.
He states that Libra is transparent. And while Libra is transparent, Libra can be changed and altered to fit regulation. A so-called hidden project wouldn’t have that. It would be created without anyone’s regulations, thrown to the public and quite possibly wreak chaos in its wake.
The world is changing. The implications of the future are incredible, and it’s truly a mystery of where we’ll end up next.