Blockchain and Stablecoin monitored by the Swiss Federal Council

Blockchain and Stablecoin monitored by the Swiss Federal Council - Swiss Council

The Swiss Federal Council continues its monitoring of cryptocurrencies, blockchain and stablecoin and also the possible challenges that may bring these in the future. At the moment, Switzerland is considered among the most "crypto-friendly" countries, especially in Europe.

In any case, in a CU of 16 October, the Federal Council of Switzerland wanted to declare that recently it was also informed about the challenges as well as the opportunities that they can carry the stablecoin. For this reason, he decided to continue a careful monitoring of the development of new digital technologies such as the distributed ledger and the blockchain, 

The Federal Council therefore, it undertakes to ensure that the various challenges that will undermine stability and monetary policies will be addressed with a spirit of cooperation and collaboration between governments at international level, with supervisors, private providers and naturally with central banks. 

The executive board also noted that the stablecoin that would like to launch Facebook, will have to be better controlled by the Libra Association, and that its exposure to volatility is however limited, because being a stablecoin it would still be linked to the performance of the Fiat currencies, that you know is a fairly stable basket. 

In any case, the Libra Association will have to ask for one specific license to FINMA in Switzerland, i.e. the payment system of the Financial Market Supervisory Authority. As the head of the association's policy stated: the dialogue between the Libra Association and FINMA is highly constructive, as we are envisioning a viable way that could allow the open source blockchain network to transform into a secure fritcionless payment system and with a regulated payment system.

This collaboration is very important in the evolution of the Libra project and we look forward to continuing the work with the parties also interested in the coming months.