Swiss president says Facebook's Libra has "failed" in its current form

Facebook's digital currency project, Libra, has failed in its current form and needs to be re-worked again in order to be approved, according to the President of Switzerland, as the cryptocurrency seeks regulatory approval.

"I don't think Libera has an opportunity in its current form, because the central banks will not accept the basket of currencies on which they depend," Ueli Maurer, the Swiss finance minister and outgoing president, told Swiss radio broadcasts.

Facebook-led digital currency plans, to be issued and governed by the Libera Association in Geneva, have raised concerns among regulators and politicians ranging from privacy to their ability to influence monetary policy and change the global financial landscape.

The officials who manage the project, including David Marcus, one of the founders of Facebook, said that the regulatory obstacles may delay the launch after the scheduled date in June.

The cryptocurrency is backed by a reserve of assets such as bank deposits and government debt held by a network of partners. This structure aims to enhance confidence and avoid price fluctuations in other cryptocurrencies.

Since early October, online payment companies PayPal and Stripe, as well as Visa, Mastercard and other projects, have pulled out amid mounting pressure from U.S. regulators, and have pointed to the potential for illegal use of the currency and stressed Facebook's damaging reputation for privacy and data protection issues.

Countries and central banks, the only entities legally permitted to issue currencies at the present time, have expressed concern about sovereignty, and French Economy Minister Bruno Le Mer expressed in October his concerns, saying: Libera is not welcome on European soil, and later added, “We will take Steps with the Italians and Germans, because our sovereignty is in danger. ”

US Federal Reserve officials earlier this month expressed US reservations, and Federal Reserve Governor Elle Brenard said: Without the necessary guarantees, globally stable currency networks could endanger consumers.