Facebook’s stablecoin, Libra, isn’t expected to roll out until sometime next year. However, that isn’t stopping the coin’s regulator, The Libra Association from applying for a payments license in Switzerland.
According to multiple reports, The Libra Association officially submitted a request to the Swiss Financial Market Supervisory Authority (FINMA), in an effort to clarify how Facebook’s coin will be regulated under Swiss law.
The choice of Switzerland as the home for the newly established Libra Association,
which when fully developed will have a diverse group of member organizations
spanning technology, financial services, social impact organizations and venture
capital, among others, harnesses Switzerland’s role as a nucleus for international
organizations,” the Libra Association said in its official press release.
Libra was first announced back in June of this year and as mentioned, the cryptocurrency is being marketed as stablecoin. The prevent any interference with its value, the coin will be regulated and monitored by the Libra Association, a subsidiary that is free of Facebook and includes financial organisations. Including Visa, Mastercard, and Paypal
The move has been, unsurprisingly, viewed with a high level of scepticism by regulators and lawmakers, especially those in the US, with good reason. While Facebook’s intentions with its coin are noble, cryptocurrency has often been linked to illicit acts such as money laundering and terrorism financing, to name a few.