Facebook’s Libra seeks Swiss payment system license amid growing cynicism


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Facebook’s Libra seeks Swiss payment system license amid growing cynicism

On Wednesday, the 11th of September 2019, Swiss Financial watchdog, FINMA or Swiss Financial Market Supervisory Authority, issued a public statement saying that the social networking tycoon, Facebook Inc.’s crypto venture Libra had been seeking a Swiss payment system license adding that the extent of Facebook’s slated plan would require a broad-based supervision.

In point of fact, the world’s No. 1 social media network and owner of four out of top six internet service providers, such as Facebook, WhatsApp, Facebook Messenger and Instagram, had announced a plan back in June this year to launch a digital currency, as the social networking service provider had been looking to expand beyond social networking and to move into the global payment and e-commerce system, nonetheless Facebook’s digital currency plan had already drawn steep criticism from policymakers across the globe.

Nevertheless, adding further concerns over Facebook’s crypto venture and noting that the issuance of Libra would require a thorough insight of capital allocation for credit, oversight of market and operational risk concentration, liquidity alongside management of Libra reserve, FINMA said on Wednesday (September 10th), “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 (and it would be) subject to additional requirements,” while followed by FINMA’s response, Geneva-based Libra Association said, “We are engaging in constructive dialogue with FINMA and we see a feasible pathway for an open-source blockchain network to become a regulated, low-friction, high-security payment system. ”