- In its current form, the social media giant’s cryptocurrency won’t be approved
- No central bank will accept the basket of currencies underpinning it
Facebook’s digital currency Libra has been a big miss so far and requires a revamp in order to be supported, said the finance minister of Switzerland and outgoing president. Where regulatory consent is concerned, Ueli Maurer, the president of Switzerland said,
“I don’t think (Libra has a chance in its current form), because central banks will not accept the basket of currencies underpinning it,”
“The project, in this form, has thus failed.”
Government debt and bank deposits held by the custodians are some of the assets backing Libra, which is meant to dodge the high volatility persistent in cryptocurrencies.
The Libra Association has shared their concerns regarding Libra with politicians and regulators that range from confidentiality to its possible ability to impact current fiat policy.
The cryptocurrency Libra scheduled to be launched in June next year may get delayed according to co-creator David Marcus and other officials running the project.