The opinions on Facebook’s upcoming digital currency projects remain rather divided. Consumers are not necessarily smitten by this venture, nor are most governments. In Switzerland, however, things are done a bit differently. FINMA’s Mark Branson sees merit in this project and praises how everything is handled in a transparent manner.
Mark Branson Likes the Libra
It is somewhat refreshing to see a financial supervisory official make positive remarks regarding Facebook’s Libra. It is a well-known fact Switzerland and FINMA are all too keen on exploring innovative ventures. It is thanks to their efforts the country has its own Bitcoin region in Zug. However, they also keep an eye on any fintech developments, including the issuance of new digital currencies by technology companies such as Facebook. Although it remains to be seen if and when Libra will be launched officially, there’s no reason to not pay attention to it.
For FINMA chief executive Mark Branson, there is no reason to worry about this digital currency. In fact, he is quite happy with how transparent Facebook CEO Mark Zuckerberg has been regarding this upcoming venture. Not too long ago, he revealed which basket of fiat currencies will be sued to give their new digital currency a relatively stable value. Additionally, Branson is also pleased with how regulators around the world are taking note of Libra and try to create a legal framework for it already.
“Cryptocurrencies in the Dark”
Although Branson is singing the praises of Libra, he is all too aware there are plenty of other projects to worry about. Particularly for the FINMA, the years ahead may prove to be rather challenging. He is aware there are many projects being “cultivated in the dark”. It is a bit unclear if he is referring to initial coin offerings – or modern versions of this way of raising money – or tries to focus everyone’s attention on something else entirely. The recent Kik – SEC spat goes to show companies should never try to ask for permission later, as it can result in their ventures being shut down prematurely.
It is also possible Branson remains extremely concerned regarding the lack of cryptocurrency regulations in most countries around the world. Although some nations are actively working on a legal framework, those efforts are somewhat limited in nature. A more unified approach is direly needed to resolve any lingering issues affecting the industry today. If and when those efforts will be undertaken, is anyone’s guess at this time.
Libra’s Future Remains Unclear
The remarks by FINMA’s Mark Branson come at an interesting time. Not that long ago, French government officials made it clear they want nothing to do with this digital currency in its current form. That sentiment was seemingly echoed by other European countries, including Germany. Even so, the currency doesn’t need to be welcomed with open arms in every region to become a successful venture. A very interesting future lies ahead, although it may take a long while until something happens in an official capacity.