The Libra project, which also involved plans for a blockchain-based stable coin currency and even the Calbira digital wallet, had experienced several setbacks in the previous twelve months. Facebook at that period received lots of criticism many from central governments and regulators namely Visa, Master Card, PayPal, Stripe and eBay and also withheld their partnership from the project after world leaders like Donald Trump expressed his concerns over potential money laundering and other more significant economic impacts due to ownership of digital currency by a tech giant.
In January this year, the World Economic Forum announced the Global Consortium for Digital Currency Governance which is an enterprise to combine all the central bank’s endeavors with exploring the potential for cryptocurrency on their fiat-backed digital currencies with the efforts of financial institutions, technical experts, representatives of the government and other international organizations.
Seizing this opportunity given by the WEF and as an excellent response to the backslash offered by the criticism, the Libra association which is in Geneva made some significant changes to its original plans meant for the cryptocurrency slipstreaming its publication of a charter, stating its initial governance policies and aims in June 2019.
Libra now applies for a Swiss payments license:
Now, all the companies that support Libra have started the process of applying for a payment system license in Switzerland from the Swiss Financial Market Supervisory Authority (FINMA) and have hailed the move as a “prominent milestone” for the same.
Here are a few highlights of the announcements made by the Libra Association in accordance with its application to the Swiss FINMA:
Libra highlighted that it had consulted and also intertwined with global stakeholders after it had published its whitepaper and had therefore incorporated all the keynotes of the feedback into the frame design of the payment system.
The association claimed to have made suitable adjustments as the project moved from being a concept to a “more operational phase,” that it will continuously incorporate suggestions from central banks and other regulatory, financial and supervisory enforcement authorities from around the world.
The decision to make it open to single-currency stable coins to the already tied multi-currency Libra coin to collaborate with central banks that are facilitating their existing payment rails along with their digital currencies.
A revised outlining that bettered the changes to its whitepaper noted some enhancements to its system.
It is now equipped with a rough framework for network-wide risk management and financial compliance, fending it off from money laundering and helping to combat financing terrorism and also to prevent illicit activities.
The members have now also funded the near-term operating expenses of the project in addition to the application of its license submitted to FINMA.
FINMA has now also given a statement regarding the application stating that “The application filed differs from that which the project had originally turned in, e.g., with a view to the Libra payment system also supporting single-currency stable coins as well as the multi-currency Libra payment token- FINMA will now thoroughly analyze the application.”
Since so, FINMA has been in contact with the Swiss National Bank and twenty other central banks and supervisory authorities around the world since its dealings began with the Libra Association, which added to the statement. It also has been a contributory advisory partner to many international working groups on the maturing of foreign policies regarding stable coins through the FSB (Financial Stability Board), to name one of them.
