Tag Archives: libra

Swiss President Says ‘No’ to Libra Project

Swiss President Says ‘No’ to Libra Project

In theory, Libra was presupposed to be managed by a Geneva-based independent association linking several companies and non-profit group

s.

Swiss outgoing President and Finance Minister Ueli Maurer said on Friday that Facebook’s Libra project “failed in its current form and needs reworking to be approved.”

He 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.”

Regulators all over the world have been worried that Libra would possibly increment the risk of money laundering and criminal actions through its global cryptocurrency available to billions of Facebook users. In September this year, United States Treasury official Sigal Mandelker stated Facebook’s Libra has to meet the highest standards of regulatory compliance prior to any launch. In the same month, Libra cryptocurrency went on to apply for licensing as a payment system in Switzerland.

Libra Will Need Extra Oversight

Swiss financial regulator FINMA then confirmed that it had received a request for an assessment of how it would classify the Libra project as currently planned. They also said back then that range of services projected by the Libra Association would need extra oversight.

FINMA said:

“Due to the issuance of Libra payment tokens, the services planned by the Libra project would clearly go beyond those of a pure payment system, FINMA said, noting this mean it would be subject to such additional requirements.

FINMA then also added that a project would undergo financial market infrastructure regulation and “would require a payment system license from FINMA.” Let’s not forget that a Swiss payment system is “automatically subject” to the Anti-Money Laundering Act. That means that “under the FMIA, all additional services that increase the risks of a payment system must be subject to corresponding additional requirements. All the potential risks of a Swiss payment system, including bank-like risks, can be addressed by imposing appropriate requirements in line with the “same risks, same rules”.

The extra conditions “would relate in particular to capital allocation, risk concentration and liquidity as well as the management of the Libra reserve”, FINMA said. One requirement for being given a Swiss payment system license would be that the “returns and risks” related to management of the reserve “were borne entirely by the Libra Association and not, as in the case of a fund provider, by the ‘stablecoin’ holders.”

Libra Plans to Maintain AML Guidelines

Libra will definitely need an international strategy from regulators especially regarding the exact qualifications for administering the reserve and its governance. It will also need to discuss the money laundering risks. From Libra they previously said they plan to maintain AML guidelines, which its members will be expected to comply with if they choose to provide financial services on the Libra network.

They said:

“The association will set standards for its members to maintain AML and anti-fraud programs, and to cooperate with legitimate law enforcement investigations. It will be the responsibility of developers building on the Libra Blockchain to comply with the laws and regulations in the jurisdictions in which they operate.”

The association also commented that financial involvement, legal consent and user protection are not competing goals, but more of a work in line with Libra’s focus on offering a simple global currency and financial infrastructure that helps billions of people.

Article Produced By
Teuta Franjkovic

Experienced creative professional focusing on financial and political analysis, editing daily newspapers and news sites, economical and political journalism, consulting, PR and Marketing. Teuta’s passion is to create new opportunities and bring people together.

https://www.coinspeaker.com/swiss-libra-project/

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Libra Will Not Hit the Market Without US Approval, Says Zuckerberg

Libra Will Not Hit the Market Without US Approval, Says Zuckerberg

                                 

The crypto sphere is known for being a disruptive force,

but even this sector got a disruptive jolt of its own when Facebook (NASDAQ:FB) announced it would be launching its own cryptocurrency, Libra, in 2020. However, ever since the company announced the launch of its own stablecoin, it has come under fire from regulators from all over the world.

Major Setback?

As a matter of fact, even the United States President slammed the project and asked the company to instead apply for a banking license. It has now emerged that Mark Zuckerberg is going to tell the US Congress that the company is going to delay the eventual launch of the cryptocurrency.The project has come under intense pressure from lawmakers, regulators, and even other companies that had initially agreed to participate in the project. Recently, some of the big names like PayPal (NASDAQ:PYPL) have decided to exit the project altogether, and the whole thing is looking quite grim for Facebook. Mark Zuckerberg seems to have conceded that the backlash against Libra is currently too strong, and hence, it would be better if the company delayed the launch altogether. In the statement, the Facebook founder wrote, “I believe this is something that needs to get built, but I understand we’re not the ideal messenger right now.”

Ripple Boosts Regulatory Focus With Opening of DC Office

The company had announced its very own cryptocurrency at the height of the crypto rally this year in 2019 and had scheduled the launch at some point in 2020. After the regulatory issues were raised by officials in the different parts of the world, the company stated that it was willing to wait until all issues are solved and launch the stablecoin afterward. While it is true that the company may have explored the idea of a delayed launch in the past, the Libra project seems to now have reached an impasse from which Facebook is struggling to recover.

Article Produced By
Ankit Singhania

Based in India, Ankit is a financial content writer and stock market analyst. He has worked for almost a decade on several financial projects related to the stock market news, fundamental research and technical analysis for several websites. He obtained his Masters Degree In finance (MS – finance) from ICFAI. Currently, he serves as a financial consultant and technical analyst at Tradersinsights.com.

https://cryptocurrencynews.com/libra-regulatory-delays-zuckerberg/

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Who could be the biggest Libra user in the future?

Who could be the biggest Libra user in the future?

                                 

Facebook’s Libra project has gone through more than enough government

and community criticism, but it still seems to be on its way to be launched sometime in the future. Sure there have been some rumors that several Libra Association members want to leave the project, but no matter how many will try to leave the project, new players will join it regardless of the overall outlook.

In the wake of so much criticism and uncertainty, multiple crypto enthusiasts tend to ask the question, “Who would actually risk using the Libra cryptocurrency?”. It’s an understandable concern considering how Facebook has been involved in data disclosure multiple times. Having one’s personal information from social media disclosed to the highest bidder may not be a life-changing issue, but having one’s financial details be in the same danger is much more serious. But, the Libra executives keep on assuring that customer data will be protected at all costs.

Who could use the Libra cryptocurrency?

After numerous surveys in different countries about Facebook’s Libra, we found out that the majority of users will not trust it as an individual provider. However, it’s likely that Libra adoption will happen through intermediary efforts, rather than direct influence over Facebook users. For example, several companies could have online shops present on Facebook, which is already a feature and only be able to sell these products via the Libra coin. This is the most likely outcome, but there are others as well. Let’s take a look at all the available options for Libra usage online.

Promotions and instant deposits

One of the primary roles of Facebook for a company is to spread awareness of their new product or a new feature that they’re offering. In most cases, this leads to consumers having to be redirected to their website if they want to make a purchase right then and there. However, with Libra coin, it could be possible to make such a payment without having to leave Facebook at all. And considering the fact that Facebook’s main goal is to keep the users online for as long as possible, this could be a very accurate prediction.

Several marketing managers have commented on this new addition saying that it may not impact the brand recognition as much as a redirect to the website, but it could increase sales, which is always the primary focus for companies. Samantha Cambridge, the manager of digital marketing of the Playamo AU blog has commented: “We as a company don’t really focus on the time that users spend on our platforms. All we focus on is the numbers, such as the amounts in deposits, withdrawals, in the amount played with and the amount lost. Therefore, having something like user-friendly payments directly from Facebook would be much more of a benefit to our platform rather than a detriment.

We’ve heard our users say numerous times that they always have difficulties to make deposits when they have to input their personal information over and over. Having a universal “digital wallet” from a platform they use on a daily basis is going to not only make the process easier for the users themselves but for us as a company as well. I understand why blogs would be against such a notion, simply because they rely on people staying on their website for as long as possible so that they can use that time spent as revenue from ads they place. I think it’s all about the product one offers.” But this is just one part of the global industries that can be affected. There are other comments as well.

E-commerce stores

The option to buy from a Facebook store has already been added to the website, however, it’s not as well performing as a redirect to the company’s website. Why? Because it’s the same process regardless of where the user makes the payment. It’s about choosing a credit/debit card and indicating the required details. However, according to several e-commerce store owners, having an effortless payment process directly from one’s Facebook account would impact company sales by a large margin. One of the most reasonable quotes to be found about this is the following:

“When doing e-commerce through Facebook, it’s absolutely essential that you’re either the first one to show up in somebody’s feed or you’re at least offering something different. Having something to stand out from the competition will determine the success of any e-commerce store owner, especially in a heavily populated area. Having the Libra coin attached to your payments could indeed be that differentiating factor between you and your competitors. If they don’t have that small extra feature that helps the user to save some time, it’s highly likely that you will be chosen as the supplier, just because you’re offering a user-friendly gateway.”

With e-commerce, it all boils down to convenience and the speed at which the users can make the payments. But this still doesn’t redeem the issues that are currently present with the Libra Coin. Some experts are essentially calling it a digital currency rather than a cryptocurrency, which in the current financial world is a big deal.

Article Produced By
Zerocrypted

https://zerocrypted.com/who-could-be-the-biggest-libra-user-in-the-future/

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