Switzerland will continue to monitor stablecoins and blockchain
Supervisory authority FINMA has revealed that the Libra project would be classified as a payment system and a corresponding licence would be required
Switzerland will continue to monitor discussions on new digital technologies, such as blockchain, and possible opportunities and challenges with stablecoin, the Swiss Federal Council hasstated.
In a board meeting the Federal Council said that it was “recently informed” about current opportunities and challenges associated with stablecoins and that while the 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.
The Federal Council hopes to address these challenges through international co-operation between governments, central banks and supervisory authorities, with private providers also included.
Switzerland is open to discussions on internationally viable standards in connection with the use of new technologies.
The Federal Council stated that there are reservations in the areas of financial stability, the fight against money laundering and terrorist financing, monetary and currency policy, and data protection.
It also said as a stablecoin backed by a basket of currencies, the volatility of Libra, which is to be overseen by the Geneva-based Libra Association, should be limited.