The globally reputed regulatory organization, the Swiss Federal Council has revealed its intentions to continue keeping a sharp scrutinizing eye on the development of new digital technologies like blockchain and stablecoin projects uprooting in different corners of the world.
According to a news publication on October 16, the Swiss Federal Council stated in a meeting that it was recently exposed to the “current opportunities and challenges associated with stablecoins.” The governing body made it clear that though the financial market space of Switzerland has always been at forefront in welcoming new-age technologies and has evolved as a crypto-friendly country which is “open to innovative approaches in the financial market,” it still is devoted to render efficiently to the risks popping up in the cryptocurrencies and stablecoins arena.
The authority in its statement quoted,
The Federal Council is committed to ensuring that the currency and stability policy challenges, in particular, are addressed through international cooperation between governments, central banks and supervisory authorities, with private providers also included.
While taking a note about Facebook’s controversial stablecoin project, Libra, the seven-members governed Swiss executive council, stated that as the project helmed by the social media giant is backed by an array of stable fiat currencies; it is likely to bear limited volatility. The Libra project, which is to be guided by the Geneva-based Libra Association, has been under the spotlight since its announcement primarily because of the security concerns hovering over it.
Some time back, it was reported that the Libra Association was required to acquire a payment system license from Financial Market Supervisory Authority (FINMA) of Switzerland for its long-awaited Libra stablecoin. Also, FINMA revealed that the Libra Association had requested the authority for an assessment as to how the body would categorize the Libra project. The regulatory authority stated back then that in Switzerland, projects like Libra would come under the financial market infrastructure regulation.
The rules and regulations concerning the payment systems in Switzerland are relied upon the prevailing international standards, more significantly as per the Principles for Financial Market Infrastructures (PFMI). Such payments systems also come under the purview of the Anti-Money Laundering Act.